In Order for the Production Possibilities Frontier to Be a Straight

question 179

Multiple Choice

In order for the production possibilities frontier to be a straight line, production must exhibit:

• A) increasing costs.
• B) decreasing costs.
• C) constant costs.
• D) increasing, then decreasing, then constant costs.

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Definitions:

Sales Commissions

Payments made to salespersons or employees based on the amount of sales generated.

Monthly Sales

The total revenue a business generates from selling its goods or services within a specific month.

Net Operating Income

Earnings before interest and taxes (EBIT); a measure of a company's profitability from its regular, core operations.

Unit Variable Cost

The variable cost associated with producing one additional unit of product.