The Law of Increasing Opportunity Cost Explains Why

question 93

Multiple Choice

The law of increasing opportunity cost explains why

• A)opportunity cost is constant along the production possibilities frontier
• B)the production possibilities frontier is downward sloping
• C)the production possibilities frontier is curved
• D)efficient points lie along the production possibilities frontier
• E)technology remains constant along a production possibilities frontier

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Definitions:

Break-even Volume

The quantity of products or services a business needs to sell to cover its costs, without making a profit or loss.

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor costs.

Break-even Point

The financial stage where total costs and total revenues are equal, meaning no net loss or gain has been achieved, often considered a minimum success point for a business venture.