Use the Following to Answer Questions

question 134

Multiple Choice

Use the following to answer questions :
-(Table: Production Possibilities for the United States and Canada) Look at the table Production Possibilities for the United States and Canada. Both nations can produce cars and lumber. In _____, the opportunity cost of _____ cars is _____ board feet of lumber.

• A)the United States; 1 million; 10 million
• B)the United States; 10 million; 1 million
• C)Canada; 1 million; 6 million
• D)Canada; 1 million; 166,000

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Definitions:

Variable Cost

Costs that change in proportion to the level of production or business activity, such as raw materials or hourly labor.

Variable Costs

Expenses that change in direct proportion to the amount of production or output.

Total Cost

The sum of all costs incurred by a business in the production of goods or services, including fixed and variable costs.

Prospective Sales

Forecasted or anticipated sales based on current trends, marketing strategies, and economic conditions.