A Point on a Production Possibilities Curve Indicates

question 322

Multiple Choice

A point on a production possibilities curve indicates

• A) resources are not being used efficiently.
• B) resources are being used efficiently.
• C) opportunity costs are constant.
• D) an output combination that can be attained only if society gets more resources or there is technological change.

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Definitions:

Over Time Cost

The added expense incurred from having employees work beyond their regular working hours.

Marginal Subcontracting Cost

The additional cost incurred for each additional unit of production that is subcontracted rather than produced in-house.

Layoff Cost

The expenses associated with reducing an organization's workforce, encompassing severance pay, benefits continuation, and potential legal costs.

Hiring And Training Cost

Expenses associated with recruiting new employees and providing them with the necessary skills and knowledge for their role.