Consider the Production Possibilities Frontier Displayed in the Figure Shown

question 98

Multiple Choice

Consider the production possibilities frontier displayed in the figure shown. The opportunity cost of one watermelon:

• A) will decrease as more watermelons are produced.
• B) is constant.
• C) will increase as more watermelons are produced.
• D) is zero at point C.

---

Definitions:

Noncash Revenues

Revenues earned by a company for which cash has not been received, often recognized through accrual accounting.

Operating Activities

Part of the cash flow statement, these activities relate directly to the trading activities of the business, including the production, sales, and delivery of the company's products and services.

Cash Flows

The net amount of cash being transferred into and out of a business, especially affecting operating, investing, and financing activities.

Bank Loan

A type of loan provided by banks to individuals or businesses with an agreement to repay the borrowed amount along with interest over a specified period.