Figure 2-3



shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes. At which point would the plant be under-utilizing its resources?

a.

A

b.

B

c.

C

d.

D

e.

E


d

Economics

You might also like to view...

Displayed below is the payoff matrix of firm B for four different strategies, B1, B2, B3, and B4, and the potential retaliatory responses of firm A (A1, A2, A3, A4).Table 12-2 ? B1 B2 B3 B4 A1 100 50 25 200 A2 10 60 150 150 A3 50 75 200 75 A4 70 90 250 15 If firm B uses the maximin criterion, which strategy will it choose? ?

A. B1 B. B2 C. B3 D. B4

Economics

Financial markets

A) channel funds indirectly between borrowers and lenders. B) channel funds directly from lenders to borrowers. C) act as go-betweens by holding a portfolio of assets and issuing claims based on that portfolio to savers. D) generally provide lenders with lower returns than do financial intermediaries.

Economics

An ad valorem tax imposed on a monopolist will reduce the deadweight loss generated by the monopolist

Indicate whether the statement is true or false

Economics

The primary purpose of the legal reserve requirement is to:

A. prevent banks from hoarding too much vault cash. B. provide a means by which the monetary authorities can influence the lending ability of commercial banks. C. prevent commercial banks from earning excess profits. D. provide a dependable source of interest income for commercial banks.

Economics