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1 year ago

A production possibilities frontier (PPF) that is a straight-line sloping down from left to right would suggest that:

1 answer:

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A production possibilities frontier (PPF) that is a straight-line sloping down from left to right would suggest that: the opportunity costs of the products are constant.

<h3>What is opportunity Cost?</h3>

Opportunity cost is an amount of money or satisfaction that an individual is willing to let go.

This is done in other to choose another product with more benefits that the previous one.

It is constant when the slope moves to the right side of the graph

Therefore, A production possibilities frontier (PPF) that is a straight-line sloping down from left to right would suggest that: the opportunity costs of the products are constant.

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So, we can calculate the underapplied or overapplied overhead for the month by using following formula:

Underapplied or overapplied overhead = Applied manufacturing OH - Actual OH

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