Suppose the economy of Georgia can produce pecans and peanuts. Suppose the economy can either produce 10,000 pecans or 15,000 peanuts if full specialization in one good were to occur
What is the opportunity cost of increasing pecan production from 5,000 to 10,000 pecans? A) 1,000 peanuts
B) 5,000 peanuts
C) 7,500 peanuts
D) 10,000 peanuts
C
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In the above figure, which movement illustrates the impact of the price level and money wage rate rising at the same rate?
A) E to H B) E to K C) E to G D) E to J
Suppose a monopolist charges a price corresponding to the intersection of the marginal cost and marginal revenue curves. If this price is between its average variable cost and average total cost curves, the firm will:
a. earn an economic profit. b. stay in operation in the short-run, but shut down in the long run if demand remains the same. c. shut down. d. none of these.
Other things the same, a decrease in velocity means that
a. the rate at which money changes hands falls, so the price level rises. b. the rate at which money changes hands falls, so the price level falls. c. the rate at which money changes hands rises, so the price level rises. d. the rate at which money changes hands rises, so the price level falls.
Firms in an industry will not earn long-run economic profits if:
A. Fixed costs are zero B. The number of firms in the industry is fixed C. There is free entry and exit of firms in the industry D. Production costs for a given level of output are minimized