Harry produces 2 balloon rides and 4 boat rides an hour. Harry could produce more balloon rides but to do so he must produce fewer boat rides. Harry is ________ his production possibilities frontier
A) producing inside
B) producing on
C) producing outside
D) producing either inside or on
B
You might also like to view...
In an Edgeworth box, all points of efficiency occur at the
A) intersections of the indifference curves. B) the points of tangency between the sets of indifference curves. C) in the midpoint of the diagram. D) at any point other than the intersections of the indifference curves.
Changes in production functions are associated with changes in
A. the levels of costs. B. the level of output. C. technology. D. demand.
The table above gives production information for Bob's Baseball Cap Company. Bob's total cost when zero caps are produced is $200 and workers cost $10 per hour. The average total cost of producing 4 baseball hats per hour is
A) $1.67. B) $50.00. C) $52.50. D) More information is needed to answer the question.
If the level of interest rates paid on time deposits rise relative to that paid by money market accounts, ceteris paribus, individual will
A) reduce their real money balances. B) first reduce then increase their real money balances. C) increase their real money balances. D) hold the same amount of money.