Table 23 -Refer to Table 2

question 197

Multiple Choice

Table 2.3
$$\begin{array}{l}\text { Table } 2.3\\\begin{array} { | l | l | l | l | l | l | } \hline \text { Products } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \\\hline \begin{array} { l } \text { Consumer } \\\text { goods }\end{array} & 40 & 35 & 20 & 7 & 0 \\\hline\end{array}\end{array}$$
-Refer to Table 2.3, which shows the production possibilities frontier between the production of capital goods and consumer goods in an economy. What is the opportunity cost of producing 3 units of capital goods at point D?

• A) 35 units of capital goods.
• B) 13 units of consumer goods.
• C) 7 units of consumer goods.
• D) 15 units of consumer goods.
• E) 5 units of consumer goods.

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Definitions:

Perfect Price Discrimination

A pricing strategy where a seller charges each buyer their maximum willingness to pay, capturing the entire consumer surplus.

Total Profits

The total income of a business after subtracting total expenses from total revenue, showing the final earning.

Price

The amount of money required to purchase a good or service, often determined by supply and demand in the market.

Demand

The quantity of a product or service that consumers are willing and able to buy at a given price over a specified period of time.