The Figure Below Shows Production Possibilities Curves for Tomatoes and Oranges

question 208

Multiple Choice

The figure below shows production possibilities curves for tomatoes and oranges in two prefectures in a country.

-Refer to the figure above.In Prefecture B,the opportunity cost of producing each additional pound of tomatoes ________.

• A) increases as more tomatoes are produced
• B) decreases as more tomatoes are produced
• C) increases up to 1 billion pounds and then decreases after 1 billion pounds
• D) decreases up to 1 billion pounds and then decreases after 1 billion pounds

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Definitions:

Permanent/Temporary

Categories representing either enduring, long-term attributes or conditions, or those that are short-lived and transient.

Post-closing Trial Balance

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Accounts Receivable

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The total amount of income generated by the sale of goods or services related to a company's primary operations.