-The Table Above Lists Six Points on the Production Possibilities

question 314

Multiple Choice

-The table above lists six points on the production possibilities frontier for grain and cars. What is the opportunity cost of producing the 5th ton of grain?

• A) 16 cars per ton of grain
• B) 6 cars per ton of grain
• C) 3 cars per ton of grain
• D) 2 cars per ton of grain

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Definitions:

Operating Expenses

Costs associated with the day-to-day operations of a business, such as salaries, utilities, and rent.

Income Statement

A report documenting a business's financial activities, including income, expenses, and net profit, for a particular period.

Period Cost

Expenses that are incurred in a particular time period and are not directly tied to the production process, such as selling, general, and administrative expenses.

Advertising Expense

A cost incurred by a business to promote its products, services, or brand names.