Table 3-12 Barb and Jim Run a Business That Sets Up and Up

question 160

Multiple Choice

Table 3-12
Barb and Jim run a business that sets up and tests computers. Assume that Barb and Jim can switch between setting up and testing computers at a constant rate. The following table applies.
​
​ ​
-Refer to Table 3-12. Which of the following points would not be on Jim's production possibilities frontier, based on a 40-hour week?

• A)(0 computers set up, 60 computers tested)
• B)(40 computers set up, 30 computers tested)
• C)(60 computers set up, 12 computers tested)
• D)(72 computers set up, 6 computers tested)

---

Definitions:

Marginal Costs

The change in total production cost that arises when the quantity produced is incremented by one unit, reflecting the cost of producing one additional unit of a good.

Incremental Costs

Costs that change or increase depending on the decisions made by a company, such as starting a new production process or producing more units of a product.

Fixed Costs

Expenses that do not change with the level of production or sales activities, such as rent or salaries.

Marginal Costs

The cost incurred by producing one additional unit of a good or service.