Consider the Production Possibilities Frontier Displayed in the Figure Shown

question 33

Multiple Choice

Consider the production possibilities frontier displayed in the figure shown.Which of the following statements is currently true?

• A) Producing at point A is the best choice, because some of both items are made.
• B) Producing at point D would be inefficient, since no books would be produced.
• C) Producing at point C is the best choice, because it's closest to the middle.
• D) Producing at point B is impossible.

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Definitions:

Investment Centers

Parts of an organization with control over their own revenues, expenses, and investments, whose performance is measured by return on investment (ROI).

Responsibility Center

An organizational unit for which a manager is assigned responsibility over costs, revenues, or assets.

Department Manager

A position responsible for overseeing the operations, productivity, and personnel of a specific department within an organization.

Revenues

The cumulative financial gain acquired by transacting goods or services indispensable to an enterprise's principal undertakings.