In a Mexican Factory,each Worker Can Produce 1/8 of a Vase

question 49

Multiple Choice

In a Mexican factory,each worker can produce 1/8 of a vase or 1/16 of a statue per hour.If there are 400 workers at the factory,the opportunity cost of one statue is

• A)1/2 of a vase
• B)1/8 of a vase
• C)8 vases
• D)16 vases
• E)2 vases

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Definitions:

Prepaid Expenses

Expenses paid in advance for goods or services to be received in the future.

Depreciation Expense

The allocated cost of an asset over its useful life, representing wear and tear, decay, or decline in value.

Note Receivable

A financial asset representing a written promise to receive a certain amount of money at a future date.

Interest Earned

The amount of income earned from depositing funds or investing in interest-bearing financial instruments.