Suppose a Production Possibilities Frontier Can Be Expressed as 9X²

question 19

Multiple Choice

Suppose a production possibilities frontier can be expressed as 9X² + Y² = 81 what is the opportunity cost of going from 1 unit of X to 2 units of X (in terms of units of Y) ?

• A) 45
• C) -
• D) 1

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Definitions:

High-Low Method

A technique used in cost accounting to estimate variable and fixed costs based on the highest and lowest levels of activity.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and labor.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent or salaries.