Use the Following to Answer Questions

question 29

Multiple Choice

Use the following to answer questions :
Figure: Bicycles and Radishes I
-(Figure: Bicycles and Radishes I) Look at the figure Bicycles and Radishes I. It shows production possibility frontiers for two countries that produce only radishes and bicycles. The axes of the two graphs are measured in equivalent units. Country A is operating at point M, and country B is operating at point N. Suppose country A discovers a new technology that greatly increases its ability to produce bicycles but has no effect on its ability to produce radishes. This would:

• A)lower the opportunity cost of producing radishes in country A.
• B)increase the opportunity cost of producing radishes in country A.
• C)not affect the opportunity cost of producing radishes in country A.
• D)increase the opportunity cost of producing radishes in country B.

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Definitions:

Planning Budget

A Planning Budget is a financial plan constructed for future periods, outlining expected revenues, expenses, and other financial activities, guiding an organization in achieving its financial goals.

Revenue

The total amount of money received by a company for goods sold or services provided during a certain time period.

Oil Well Service

A category of services aimed at the maintenance, workover, and completion of oil wells to enhance or maintain their production efficiency.

Activity Variance

The difference between actual activity levels and those projected, affecting budgeted and actual costs.