Use the Following to Answer Question

question 295

Multiple Choice

Use the following to answer question:

-(Figure: Guns and Butter) Use Figure: Guns and Butter.This production possibility frontier is:

• A)bowed out because of increasing opportunity costs.
• B)bowed in because of increasing opportunity costs.
• C)bowed in because of constant costs of guns and butter.
• D)linear because of constant costs.

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Definitions:

Break-Even Point

The stage where sales numbers or output equalize with total expenditures, creating a situation where there's no financial loss or gain.

Fixed Expenses

Costs that do not change with the level of production or sales over a certain period, such as rent, salaries, and insurance.

Selling Price

The amount of money charged for a product or service offered to customers.