The Following Production Possibilities Table Represents an Economy Which Is

question 2

Multiple Choice

The following production possibilities table represents an economy which is producing two products,tanks and autos.Refer to the table,in moving from possibility C to D,the cost of a tank in terms of autos is:

• A) 50
• B) 100
• C) 200
• D) 300

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Definitions:

Gross Profit

The difference between revenue and the cost of goods sold (COGS), indicating the profit a company makes after deducting the costs associated with making and selling its products or services.

Inventory Purchases

The acquisition of goods and materials a company intends to sell in its ordinary course of business.

Beginning Inventory

The value of goods available for sale at the start of an accounting period.

Beginning Inventory

The value of all inventory held by a company at the start of an accounting period.