The slope of a production possibilities frontier that displays increasing opportunity cost is
A) positive and constant.
B) negative and constant.
C) steeper near the horizontal intercept than near the vertical intercept.
D) steeper near the vertical intercept than near the horizontal intercept.
C
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Suppose that, in a sequential game, the first player chooses the strategy with the highest payoff, taking into account an optimal response from the second player. The outcome that results is
a. a Nash equilibrium. b. Pareto optimal. c. a Prisoners' Dilemma. d. a Stackelberg equilibrium.
In an oligopoly, firms can increase their market power by
A) undertaking heavy advertising expenditure. B) colluding to set prices. C) selling to buyers who have market power. D) pursuing dominant strategies.
Ceteris paribus, how does an expansion in the United States affect U.S. net exports?
What will be an ideal response?
Which of the following best describes a situation of economic efficiency?
A) A firm produces to the point at which P = AVC, with MR < MC. B) A firm produces to the point at which P = ATC, with MC < MR. C) A firm produces to the point at which MR = AFC, with P = AVC. D) A firm produces to the point at which MR = MC, with P = MC.