Use the Following to Answer Questions

question 270

Multiple Choice

Use the following to answer questions :
Figure: Strawberries and Submarines II
-(Figure: Strawberries and Submarines II) Look at the figure Strawberries and Submarines II. Suppose the economy is operating at point A. The first submarine, which is achieved at point B, would have an opportunity cost of _____ million tons of strawberries.

• A)50
• B)150
• C)400
• D)950

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Definitions:

Net Working Capital (NWC)

The difference between a company's current assets and current liabilities, indicating its short-term financial health.

Sales Price

The actual amount for which a product or service is sold in the market.

Variable Costs

Costs that change in proportion to the level of activity or volume of goods produced in a business.

Fixed Costs

Expenses that do not change with the level of production or sales.