If a Given Production Combination Is Known to Be Attainable

question 130

Multiple Choice

If a given production combination is known to be attainable, then it:

• A)must be on the production possibilities curve.
• B)must be an inefficient point.
• C)must be an efficient point.
• D)could be either an inefficient or efficient point.

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Definitions:

Full Costing

An accounting method that includes all direct and indirect costs in the price of a product or service.

Carrying Cost

The total costs associated with holding inventory or assets, including storage, insurance, and taxes.

Administrative Costs

Expenses related to the general operation of a business, including salaries of executive officers, legal and clerical salaries, and other general expenses.

Sales Taxes

Taxes imposed by governments on sales of goods and services, typically calculated as a percentage of the retail price paid by the consumer.