Why is opportunity cost a ratio?
What will be an ideal response?
The slope of the PPF is a ratio that expresses the quantity of lost production of the good on the y-axis to the increase in the production of the good on the x-axis moving downward along the PPF. The steeper the slope, the greater ratio, and the greater is the opportunity cost of increasing the output of the good measured on the horizontal axis.
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Suppose the price of coffee falls. Other things constant, what will not happen?
A) People will consume more coffee. B) People will consume more cream. C) The demand for coffee will rise. D) The demand for cream will fall. E) More people will now consider drinking bottled water.
Early efforts by states to regulate the railroads:
a. resulted in "Granger laws." b. resulted in laws that were initially supported by the railroads. c. outlawed product discrimination. d. allowed for higher charges on short haul freight.
Suppose a monopsonist finds that the market price of its output has doubled, and to increase production to the new profit-maximizing level it has to double the wage to get more workers. How much, if any, does the return to monopsony power change? a. It increases by the number of new workers needed. b. It increases by the difference between the new wage and the old wage, multiplied by the number
of workers. c. It decreases by the difference between the new wage and the old wage, multiplied by the number of workers. d. It increases, but we cannot say by how much. e. It doubles.
What are some of the advantages of trading in decentralized electronic exchanges?
What will be an ideal response?