Figure 3-2 Brazil's Production Possibilities Frontier

question 8

Multiple Choice

Figure 3-2
Brazil's Production Possibilities Frontier
-Refer to Figure 3-2.If the production possibilities frontier shown is for 24 hours of production,then how long does it take Brazil to make one peanut?

• A)1/10 hour
• B)1/3 hour
• C)3 hours
• D)10 hours

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Definitions:

Standard Costs

The estimated costs of materials, labor, and overhead allocated to produce a product or perform a service under normal conditions.

Direct Labor-Hours

The total hours worked by employees who are directly involved in the production process.

Depreciation

The process of allocating the cost of a tangible asset over its useful life, representing the asset's consumption, wear and tear, or obsolescence.

Fixed Overhead

The total of all costs that do not vary with production level, including items such as rent, property taxes, and salaries of permanent staff.