Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point B. The opportunity cost of moving from Point B to Point A is the
A. 120 LCD TVs that must be forgone to produce 20 additional OLED TVs.
B. 30 LCD TVs that must be forgone to produce 40 additional OLED TVs.
C. 20 OLED TVs that must be forgone to produce 30 additional LCD TVs.
D. 40 OLED TVs that must be forgone to produce 120 additional LCD TVs.
Answer: C
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Suppose that when a firm produces the level of output at which price equals marginal cost, the firm's total revenue is less than its variable cost. In this case, the firm should:
A. purchase more fixed factors of production. B. shut down. C. produce more so that its total revenue increases. D. not change its level of output even if it's earning an economic loss in the short run.
Answer the following question based on the graph showing the median voter. If candidate A took a position at VM, she would have the best chance of winning if she convinced voters that candidate B is taking a position ______.
a. as far as possible from VM
b. just to the left of V2
c. just to the right of V1
d. as near as possible to VM
Refer to the graph shown. The segment of the demand curve between the initial equilibrium price of $5.00 and the new equilibrium price of $3.00 is:
A. elastic. B. perfectly inelastic. C. inelastic. D. perfectly elastic.
If the government forces a natural monopoly to produce the output level at which P = MC, the firm will
A. Produce where ATC is at a minimum. B. Fail to produce efficiently. C. Produce less than the profit-maximizing level of output. D. Incur losses.