The Figure Given Below Shows the Production Possibilities Frontier for Mufflers

question 117

Multiple Choice

The figure given below shows the production possibilities frontier for mufflers and socks.The opportunity cost of moving from point b to d is:

• A)30 mufflers.
• B)50 mufflers.
• C)100 socks.
• D)150 socks.
• E)250 socks.

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Definitions:

Pretax Return

The income a company generates before any taxes are subtracted.

Working Capital

The gap between an organization's current assets and its current liabilities, reflecting the business's short-term fiscal stability and operational effectiveness.

Salvage Value

The projected sales value of an asset at the termination of its effective life.

Financially Attractive

Describes opportunities or investments that are likely to provide a good return or prove to be profitable.