When Operating on Its PPF, a Country Can Produce Two

question 22

Multiple Choice

When operating on its PPF, a country can produce two tonnes of butter and 200 cars OR three tonnes of butter and 150 cars. The opportunity cost of one tonne of butter is ________ cars per tonne of butter.

• A)50
• B)0.75
• C)300
• D)200

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Definitions:

Variable Cost

Costs that vary directly with the level of production or output, such as raw materials and labor expenses.

Product-oriented Layout

An arrangement of resources in a production environment where machinery and equipment are organized according to the sequence of operations required to produce a particular product efficiently.

Sugar Beets

Sugar beets are a root vegetable typically cultivated in temperate climates for the production of sugar, containing a high concentration of sucrose.

Assembly Line Balancing

The process of assigning tasks to workstations, so that each has a similar amount of work and the production process is as efficient as possible.