A curve that shows the various combinations of goods and services that are possible for an economy to produce with a given amount of resources is referred to as a(n):
A) supply curve.
B) isocost curve.
C) budget constraint.
D) production possibilities curve.
D
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Which of the following is likely to shift the demand curve for carpenters rightward, assuming all else equal?
A) A fall in the wage rate of carpenters B) A fall in the price of wood C) A rise in the wage rate of carpenters D) A rise in the price of wood
How is a firm's vertical scope determined?
If a firm is using a resource hired in a perfectly competitive market, and if the price of the resource exceeds the marginal revenue product of the resource,
a. more of the resource should be used. b. less of the resource should be used. c. the firm should pay a lower price for the resource. d. the firm should pay a higher price for the resource. e. the firm is using the optimal amount of the resource
In the long run, firms in a monopolistically competitive market operate:
A. at less than full capacity. B. on an efficient scale. C. at lowest average total costs possible. D. at full capacity.