Refer to Figure 8.5. The marginal cost of the third oven is
A) $50.
B) $100.
C) $150.
D) indeterminate from this information.


A) $50.

Economics

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The endpoints of an economy's production possibilities frontier (PPF) for goods X and Y are: (2,000X, 0Y) and (0X, 500Y). Furthermore, the opportunity cost between these two goods is always constant. Which of the following combinations of the two goods, X and Y, lies on the economy's PPF?

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