Moe Divides His Time Between Studying Physics and Studying Economics

question 39

Multiple Choice

Moe divides his time between studying Physics and studying Economics. His production possibilities curve for his final grade in each class is shown below. Moe needs to earn at least an 80 in both economics and physics to keep his scholarship. Given his current PPC, an 80 in both classes is ______.

• A)unattainable
• B)attainable
• C)efficient
• D)inefficient

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Definitions:

Average Operating Assets

A metric representing the average value of the assets involved in the operating activities of a business over a period.

Contribution Margin

The difference between sales revenue and variable costs of a product or service, indicating the amount contributing to covering fixed costs and generating profit.

Fixed Costs

Fixed costs refer to business expenses that remain constant regardless of the level of production or sales, such as rent, salaries, and insurance premiums.