The bowed-outward shape of the production possibilities frontier can be explained by the fact that.
1 answer:
The bowed-outward shape of the production possibility frontier illustrates that the <u>opportunity cost</u> of one good in terms of the other depends on how much of each good the economy is producing.
<h3>What is Production Possibility Frontier?</h3>The production possibility frontier (PPF) is a curve in economics that depicts the maximum amounts that two goods can create if they both rely on the same limited resource for production.
From the attached picture below, Let's assume that:
- The vertical product is: wine
- The horizontal product is: cotton
The bowed-outward shape of the production possibility frontier illustrates that the <u>opportunity cost</u> of one good in terms of the other depends on how much of each good the economy is producing.
Learn more about the production possibility frontier (PPF) here:
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Answer:
reported as income for all three years is $7,000
Explanation:
given data
cost of the ending inventory = $181,000
market value inventory = $160,000
to find out
Shondee Corporation must add income
solution
we get here Income per year that is
Income per year = (Value under FIFO Method - Value Under Cost Method ) ÷ Number of year ..............................1
put here value we get
Income per year =
Income per year =
Income per year = $7000
so reported as income for all three years is $7,000