Use the Following to Answer Question

question 169

Multiple Choice

Use the following to answer question
Figure: Bran Muffins and Corn Flakes PPF
-(Figure: Bran Muffins and Corn Flakes PPF) The graph shows the possibilities frontier for a bakery that makes corn flakes and bran muffins.Which of the following is NOT correct?

• A) The opportunity cost of increasing production of corn flakes from 200 to 300 pounds is 50 pounds of bran muffins.
• B) Due to limited resources,there is a tradeoff between producing corn flakes and bran muffins.
• C) The graph implies that resources well-suited for making corn flakes are not as well-suited for producing bran muffins.
• D) The company faces decreasing opportunity costs.

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Definitions:

Securities Exchange Act

A U.S. law governing the trading of securities (stocks, bonds, and securities futures) to protect investors against manipulation.

Insider Trading

The unauthorized use of secret information for making profitable trades on the stock market to benefit oneself.

Exemption From Registration

A situation where a party is relieved from the requirement to register information or activities with a governmental or regulatory authority.

Components Assembly Corporation

A business specializing in the process of assembling parts to create finished products, often in the manufacturing sector.