-The Figure Above Shows the Production Possibilities Frontier for a Country.How

question 187

Multiple Choice

-The figure above shows the production possibilities frontier for a country.How does the opportunity cost of compact cars forgone per SUV gained moving from point C to point B compare with the movement from point B to point A?

• A) The opportunity cost of moving from point C to point B is greater than the movement from point B to point A.
• B) The opportunity cost of moving from point C to point B is the same as the movement from point B to point A.
• C) The opportunity cost of moving from point C to point B is less than the movement from point B to point A.
• D) The opportunity costs cannot be compared because the units of moving from point C to point B differ from the units of moving from point B to point A.
• E) More information is needed to determine how the two opportunity costs compare.

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Definitions:

Long-term Consequences

Outputs or effects that manifest or are felt over an extended period, often as a result of earlier actions or decisions.

Firm's Performance

A measure of how well a company uses its assets and manages its operations to generate profits.

Network Design

The planning and optimization of a company's supply chain network's structure and operations for efficient production, distribution, and fulfillment.

Supply Chain Network

The interconnected system of organizations, people, technology, activities, information, and resources involved in moving a product or service from supplier to customer.