The Unattainable Points in a Production Possibilities Diagram Are

question 55

Multiple Choice

The unattainable points in a production possibilities diagram are

• A)the points within the production possibilities frontier.
• B)the points along the production possibilities frontier.
• C)the points of the horizontal and vertical intercepts.
• D)the points outside the production possibilities frontier.

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Definitions:

Standard Quantity

The predetermined amount of materials or inputs that should be used in the production of a single unit of goods, serving as a benchmark for efficiency.

Actual Output

The real production quantity completed within a specific period.

Standard Price

The pre-determined cost that is expected to be paid for a specific item or service under normal conditions.

Standard Labour Rate

The predetermined wage rate used for budgeting and variance analysis, representing the expected cost per hour of labor.