Below Are Some Production Possibilities Data for the Mystical Land

question 27

Multiple Choice

Below are some production possibilities data for the mystical land of Ghandor.
$\begin{array} { l r r r r r } & { \text { A } } &{ \text { B } } & { \text { C } } & \text { D } & \mathbf { E } \\\text { Arrows } & 0 & 1 & 2 & 3 & 4 \\\text { Viners } & 20 & 18 & 14 & 8 & 0\end{array}$
-Refer to the information above to answer this question. Suppose that Ghandor is currently producing combination A What is the opportunity cost of producing 4 units of Arrows.

• A) Zero.
• B) 4 units of Viners.
• C) 5 units of Viners.
• D) 20 units of Viners.

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Definitions:

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Joint Profits

Are the combined earnings of two or more entities, often used to evaluate the financial outcome of a partnership or merger.

Marginal Cost

The cost added by producing one additional unit of a product or service, a crucial concept in economic decision-making and pricing strategies.

Perfectly Competitive

A market structure where many firms offer a homogeneous product, there are no barriers to entry or exit, and all firms are price takers.