Use the Following to Answer Question(s)

question 180

Multiple Choice

Use the following to answer question(s) :
Exhibit: Strawberries and Submarines

-(Exhibit: Strawberries and Submarines) Suppose the economy is now operating at point A. The first submarine, which is achieved at point B, would have an opportunity cost of _______ million tons of strawberries.

• A) 50
• B) 150
• C) 400
• D) 950

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Definitions:

Carrying Costs

The expenses associated with holding inventory, including storage, insurance, taxes, and opportunity costs.

Inventory Rises

An increase in the quantity of goods that a company holds, which could indicate either growing sales or overproduction.

Revolving Credit

Revolving credit is a flexible funding option where credit is automatically renewed as debts are paid off, up to a certain limit.

Promissory Note

A financial instrument that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.