Suppose that opportunity costs are constant and that Fred can either bake a maximum of six pies or three cakes in a day. Ethel can either produce a maximum of eight pies or two cakes in a day. Ethel's opportunity cost to produce one cake is
A) one-half pie.
B) two pies.
C) six pies.
D) four pies.
Answer: D
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Supply and demand analysis
A. can be used to understand solutions to pollution, but not causes. B. can be used to analyze how externalities lead to environmental problems. C. cannot be used to analyze pollution, which is a physical and chemical problem. D. cannot be used to solve the pollution problem, but can be used to analyze it.
Table 13.1XYZ Bank Balance SheetAssetsLiabilitiesTotal reserves$100,000Transactions accounts$400,000Loans300,000??Refer to Table 13.1. With a required reserve ratio of 20 percent, XYZ Bank could support maximum transactions account balances of
A. $20,000. B. $500,000. C. $300,000. D. $80,000.
The first antitrust law in the United States was the
A) Clayton Act. B) Contestable Markets Act. C) the Federal Trade Commission Act. D) Sherman Antitrust Act.
With a given plant size, an increase in output will NOT result in an increase in
A. average fixed cost. B. total cost. C. average variable cost. D. total fixed cost.