If a Society Is Currently Producing the Combination of Bicycles

question 62

Multiple Choice

If a society is currently producing the combination of bicycles and computers shown by point D,the production of 2 more bicycles:

• A)cannot be realized because resources are fully employed
• B)costs 1 computer
• C)costs 2 computers
• D)means that some resources are not fully employed
• E)costs 6 computers

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Definitions:

Marginal Cost

The expense incurred from the manufacture of an extra single product or service.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Profit Maximization

The approach a corporation takes to figure out the price and production level that brings in the most profit.

Profit Sharing

A company policy wherein employees receive a share of the profits of the business, which serves as a motivation and reward for their performance.