Graph 2-4 -Refer to Graph 2-4.On the Production Possibilities Frontier Shown, the Frontier

question 41

Multiple Choice

Graph 2-4
-Refer to Graph 2-4.On the production possibilities frontier shown, the opportunity cost to the economy of getting 10 additional roller blades by moving from point A to point B is:

• A)15 bikes
• B)10 bikes
• C)five bikes
• D)impossible to know without knowing the cost of the resources used to produce the additional roller blades

---

Definitions:

Authority

The power or right to make decisions, direct others, and enforce obedience within a particular scope.

Plant Assets

Fixed assets that are tangible in nature, such as buildings and machinery, used in the operations of a business and expected to be useful for many years.

Profit Margin

A measure of a company's profitability, typically defined as net income divided by revenue, and expressed as a percentage.

Investment Turnover

A component of the rate of return on investment, computed as the ratio of sales to invested assets.