Suppose a Production Possibilities Frontier Can Be Expressed as 9X²

question 31

Multiple Choice

Suppose a production possibilities frontier can be expressed as 9X² + Y² = 81 what is the opportunity cost of going from 2 units of X to 3 units of X (in terms of units of Y) ?

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Definitions:

Cost Driver

A factor that causes the cost of an activity or a process to change.

Activity Drivers

Factors that influence the cost of business activities by determining the level of effort or resources required.

Labour Hours

Refers to the total amount of work time spent by employees, including both direct and indirect labor activities.

Facility-sustaining Activities

Costs and activities associated with maintaining a manufacturing or production facility at an operational status, independent of the actual levels of production.