Use the Figure Below to Answer the Following Questions

question 97

Multiple Choice

Use the figure below to answer the following questions.
Table 2.4.1
The planets of Vulcan and Romulus each produce goods X and Y.
The following table gives points on their production possibilities frontiers.

-Refer to Table 2.4.1. For Vulcan, the opportunity cost of producing an additional unit of X is

• A)4 units of Y.
• B)2 units of Y.
• C)2/3 units of Y.
• D)1 unit of Y.
• E)dependent upon how many units of X are already produced.

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Definitions:

Decision

The process of making choices among alternative courses of action.

Sunk Costs

Costs that have already been incurred and cannot be recovered, and thus should not affect future business decisions.

Future Costs

Costs that will be incurred in the future, impacting decisions on investments, production, and other business activities.

Relevant

Relates to or directly impacts the subject under discussion.