The Figure Given Below Shows the Production Possibilities Frontier for Mufflers

question 54

Multiple Choice

The figure given below shows the production possibilities frontier for mufflers and socks. If society moves from point c to point d, then society:​ ​
Figure 2.4

• A)gains 100 socks.
• B)loses 30 mufflers.
• C)is worse off after the change in production.
• D)is not operating efficiently.
• E)experiences some unemployment of resources.

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Definitions:

Flexible Budget

A budget which is responsive and adjusts based on fluctuations in levels of volume or activity.

Sales Commissions

Fees paid to salespersons for selling products or services, often a percentage of the sale amount.

Shipping Expenses

Costs incurred by a company to transport its products to customers, often classified as part of operating expenses.

Sales Manager's Salary

The compensation paid to the individual responsible for directing and managing a company's sales team and strategies.