In an eight-hour day, Andy can produce either 24 loaves of bread or 8 pounds of butter. In an eight-hour day, John can produce either 8 loaves of bread or 8 pounds of butter. The opportunity cost of producing 1 pound of butter is
What will be an ideal response?
3 loaves of bread for Andy and 1 loaf of bread for John.
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Assume a simplified banking system subject to a 20 percent required reserve ratio. If there is an initial increase in excess reserves of $100,000, the money supply
A. increases $100,000. B. increases $500,000. C. increases $600,000. D. decreases $500,000.
This table shows the total costs for various levels of output for a firm operating in a perfectly competitive market.PriceQuantityTC$500$10.00$501$20.00$502$27.50$503$77.50$504$147.50$505$250.00According to the table shown, fixed costs must be:
A. $200. B. $10. C. $60. D. Fixed costs cannot be determined by the information in the table.
What variables besides real GDP tend to decline during recessions? Given the definition of real GDP, argue that declines in these variables are to be expected
A feature of monopolistic competition is:
A. considerable control over price. B. homogeneous or standardized products. C. a patent-protected product. D. nonprice competition.