The Production Possibilities Curve Illustrates the Basic Principle That

question 50

Multiple Choice

The production possibilities curve illustrates the basic principle that:

• A)the production of more of any one good will in time require smaller and smaller sacrifices of other goods.
• B)an economy will automatically seek that level of output at which all of its resources are employed.
• C)if all the resources of an economy are in use, more of one good can be produced only if less of another good is produced.
• D)an economy's capacity to produce increases in proportion to its population size.

Apply the variable cost concept in setting prices and calculating desired profits.

Utilize the total cost concept for product pricing and understand its distinction from the variable cost concept.

Identify the profitability of products using contribution margin analysis and the theory of constraints.

Understand the application of activity-based costing in determining product costs and profitability.

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The act of thoughtful regard or provision for someone or something, often reflecting kindness or concern for others.

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Explains the meaning of a word or phrase.

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involves recommending a course of action or establishing rules or guidelines to be followed.

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Employees or team members who report to a higher-ranking individual or manager within an organization.