-The Above Figure Shows the Production Possibility Frontier for a Country.Suppose

question 16

Multiple Choice

-The above figure shows the production possibility frontier for a country.Suppose the country is producing at point A.What would be the opportunity cost to increase the production of rice to 12 tons?

• A) 6 thousand bottles of wine
• B) 15 thousand bottles of wine
• C) 9 thousand bottles of wine
• D) 6 tons of rice
• E) Nothing, it is a free lunch.

---

Definitions:

Operating Budgets

Financial plans that outline the projected revenue, expenses, and profit for the operations of a business within a specific period.

Sales Revenue

The income received from selling goods or services over a period of time.

Budgeted Sales Revenue

Projected income from sales over a certain period, used for planning and forecasting operations.

Sales Increase

A rise in the volume or value of products or services a business has sold within a specific period.