Refer to the Above Diagram

question 124

Multiple Choice

Refer to the above diagram.The combination of computers and bicycles shown by point F:

• A)is unattainable, given currently available resources and technology.
• B)is attainable, but entails economic inefficiency.
• C)is irrelevant because it is inconsistent with consumer preferences.
• D)suggests that opportunity costs are constant.

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Definitions:

Operating Expenses

Operating expenses consist of the costs related to a company's primary operational activities, excluding costs associated with manufacturing or production.

Factory Utilities

Expenses related to services like electricity, water, and gas utilized in the manufacturing process.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and included in its cost.

Manufacturing Overhead

Costs not directly tied to the production of goods, including rent for factory space and equipment depreciation.