Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, as the economy moves from Point B to Point D, the opportunity cost of motorcycles, measured in terms of hybrid cars,
A. increases
B. remains constant.
C. initially increases, then decreases.
D. decreases.
Answer: A
You might also like to view...
Which of the following would cause an outward shift of the production possibilities frontier?
a. An increase in opportunity costs b. A reduction in the size of the labor force c. A reduction in inefficiency d. A change in the combination of goods produced e. An improvement in technology
What are the conditions that characterize the sellers' side in a perfectly competitive market?
What will be an ideal response?
Historical data on prices and quantities sold do not provide the basis for drawing an accurate demand curve because
A. reporters who gather these data are often wrong. B. factors other than price may change over time. C. they do not include measures of price close to the quantity axis. D. they sometimes tend to be clustered around one point.
In a perfectly competitive market, the process of entry and exit will end when firms face
a. marginal revenue equal to long-run average total cost. b. total revenue equal to average total cost. c. average revenue greater than marginal cost. d. accounting profits equal to zero.