Below Is Production Possibilities Data for the Countries of Mental

question 24

Multiple Choice

Below is production possibilities data for the countries of Mental and Etheric.

-Refer to the information above to answer this question.If both countries produce combination D what will be the combined outputs?

• A)50 million units of soya milk and 130 million units of rice cakes.
• B)60 million units of soya milk and 120 million units of rice cakes.
• C)60 million units of soya milk and 130 million units of rice cakes.
• D)120 million units of soya milk and 100 million units of rice cakes.

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Definitions:

Throughput

The rate at which goods or services are produced or processed in a system.

Break-Even Analysis

A means of finding the point, in dollars and units, at which costs equal revenues.

Variable Costs

Costs that vary directly with the level of production or business activity, such as materials and labor.

Fixed Costs

Costs that do not change with the level of production or sales, such as rent, salaries, and insurance.