The Following Graph Shows the Production Possibilities Curve for the Economy

question 3

Multiple Choice

The following graph shows the production possibilities curve for the economy with only two members, Silvia and Art. Silvia can produce either 50 pounds of beef or 2 computers per week, and Art can produce 100 pounds of beef or 1 computer per week. Both of them work 40 weeks per year. Art's opportunity cost of producing one computer is ________ pounds of beef.

• A)1/50
• B)1/100
• C)50
• D)100

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Definitions:

Annual Depreciation

The allocation of an asset's cost over its useful life, representing how much of an asset's value has been used up during a fiscal year.

Simple Rate Of Return

A straightforward method of calculating the return on investment by dividing annual incremental net operating income by the initial investment cost.

Cash Operating Costs

Direct costs associated with the day-to-day operations of a business, paid out in cash, including labor, materials, and overhead.

Automating

Refers to the use of technology to perform tasks with minimal human intervention, typically to improve efficiency and reduce costs.