Figure 23 Alt Text for Figure 2

question 153

Multiple Choice

Figure 2.3 Alt text for Figure 2.3: In figure 2.3, 3 graphs, A, B and C comparing production of cattle and llamas.
Long description for Figure 2.3: Graph A: the x-axis is labelled, llamas, and y-axis is labelled, cattle.A line slopes down from the top left corner of the quadrant, near the top of the y-axis to the bottom right corner, near the end of the x-axis.Graph B: the x-axis is labelled, llamas, and y-axis is labelled, cattle.A convex curve begins in the top left corner, near the top of the y-axis and ends in the bottom right corner, near the end of the x-axis.Graph C: the x-axis is labelled, llamas, and y-axis is labelled, cattle.A concave curve begins in the top left corner near the top of the y-axis, and ends in the bottom right corner, near the end of the x-axis.
-Refer to Figure 2.3.Sergio Vignetto raises cattle and llamas on his land.Half the land is more suitable for raising cattle and half the land is better suited for raising llamas.Which of the graphs in Figure 2.3 represent his production possibilities frontier?

• A)Graph A
• B)Graph B
• C)Graph C
• D)either Graph A or Graph C
• E)either Graph B or Graph C

---

Definitions:

Appraisal Costs

Costs associated with the evaluation and inspection of products or services to ensure they meet quality standards.

Internal Failure Costs

Costs incurred when a defect is discovered before being received by a customer.

Variable Overhead

Costs that vary proportionally with the level of production or sales, such as utilities or commissions.

Fixed Overhead

The portion of overhead costs that remains constant regardless of the level of production or business activity.