Choosing to produce at any point within a production possibilities frontier is:
A. inefficient, meaning the society would not be using all its available resources in their best possible uses.
B. efficient but not attainable.
C. unobtainable, meaning the society cannot produce that combination of goods.
D. efficient, meaning the society would be using all its available resources in their best possible uses.
Answer: A
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Big Woods is a lumber firm that sells plywood sheets to local builders. If the annual holding cost of a sheet of plywood is $15 and the managers of Big Woods order 500 sheets of plywood, what is the total annual carrying costs of the inventory?
A) $8,500 B) $3,750 C) $7,500 D) $3,000
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