In a Mexican factory, each worker can produce 1/8 of a vase or 1/16 of a statue per hour. If there are 400 workers at the factory, the opportunity cost of one vase is
a. 2 statues
b. 8 statues
c. 1/2 of a statue
d. 16 statues
e. 1/16 of a statue
C
You might also like to view...
In the long run, monetary and fiscal policies have no control over
A) the unemployment rate B) nominal GDP. C) the inflation rate. D) the interest rate
One of the reasons that import substitution is popular is that
a. there was never any demand for the products in question b. infant industries would have to compete against global rivals c. it benefits suppliers to the favored domestic industries d. it slows down the progression through the production chain e. the emphasis is on comparative advantage and trade expansion
Under conditions of oligopoly, economies of large-scale production mean that: a. firms are able to sell all of the output they desire
b. it is difficult for a firm to determine its profit-maximizing price and output. c. large firms would find it more profitable to break up into smaller production units. d. small firms are at a disadvantage in competing with relatively large firms.
If Mateo is paid $25,000 to sell his crop of tomatoes even though he would have been willing to have sold the crop for as little as $20,000, this indicates that
a. Mateo received no producer surplus from the transaction. b. Mateo received $5,000 of producer surplus from the transaction. c. Mateo received $20,000 of producer surplus from the transaction. d. Mateo received $25,000 of producer surplus from the transaction.