Which of the following statements regarding the opportunity cost of producing potatoes and the production possibilities frontier is true for the island of Atlantis? A. The island of Atlantis has an increasing opportunity cost of producing potatoes and the production possibility frontier is bowed outward. B. The island of Atlantis has an increasing opportunity cost of producing potatoes and the production possibility frontier is bowed inward. C. The island of Atlantis has a constant opportunity cost of producing potatoes and the production possibility frontier is linear. D. The island of Atlantis has an decreasing opportunity cost of producing potatoes and the production possibility frontier is bowed outward.

Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?