Table 23 -Refer to Table 2

question 168

Multiple Choice

Table 2.3
$$\begin{array}{l}\text { Table } 2.3\\\begin{array} { | l | l | l | l | l | l | } \hline & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { Capital goods } & 0 & 1 & 2 & 3 & 4 \\\hline \begin{array} { l } \text { Consumer } \\\text { goods }\end{array} & 40 & 35 & 20 & 7 & 0 \\\hline\end{array}\end{array}$$
-Refer to Table 2.3, which shows the production possibilities frontier between the production of capital goods and consumer goods in an economy. What is the opportunity cost of producing 1 unit of capital goods at point B?

• A) 35 units of capital goods
• B) 15 units of consumer goods
• C) 13 units of consumer goods
• D) 7 units of consumer goods
• E) 5 units of consumer goods

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Definitions:

Production Costs

Expenses associated with manufacturing a product including labor, materials, and overhead.

Activity Levels

The degree of operations or the volume of work performed in a specific period, affecting various costs and operational strategies.

Manufacturing Overhead

The indirect costs of production, such as utilities and maintenance, that are not directly tied to specific products.

Units Produced

The total number of units of product completed by a manufacturing process in a specific period.