The production possibilities frontier has a bowed-out shape because the quantity of guns the economy must give up in order to produce more butterthe more butter is produced. In other words, the opportunity cost of butterwith increased production. Imagine a society that produces military goods and consumer goods, which we'll call "guns" and "butter," respectively. Indicate which of the points are impossible for the economy to achieve and which are feasible but inefficient. Characteristic A B C D Impossible for the economy to achieve Feasible but inefficient

Exercise 2-12 cost behavior; high-low method [lo2-3, lo2-4] speedy parcel service operates a fleet of delivery trucks in a large metropolitan area. a careful study by the company’s cost analyst has determined that if a truck is driven 120,000 miles during a year, the average operating cost is 11.6 cents per mile. if a truck is driven only 80,000 miles during a year, the average operating cost increases to 13.6 cents per mile. required: 1.& 2. using the high-low method, estimate the variable and fixed cost elements of the annual cost of truck operation. (round the "variable cost per mile" to 3 decimal places.)