If the economy were producing at point C and moves to point B
Hypothetical Production Schedule for a Two-Product Economy
A. 4 units of capital goods are gained, while the capacity to produce 32 consumer goods are lost.
B. 16 units of capital goods are gained at an opportunity cost of producing 40 consumer goods.
C. 16 units of capital goods are gained at an opportunity cost of producing 72 consumer goods.
D. 4 units of capital goods are gained, while the capacity to produce 72 consumer goods are lost.
A. 4 units of capital goods are gained, while the capacity to produce 32 consumer goods are lost.
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In order to derive a market demand curve from individuals' demand curves, we add up the
A. incomes of all buyers, assuming that their tastes remain constant. B. various individuals' quantities demanded at each price. C. various prices that each buyer is willing and able to pay. D. total number of buyers in the market at each time period.
When the Fed purchases government securities from a commercial bank, the bank
a. loses its ability to make loans. b. automatically becomes poorer. c. loses equity in the Fed. d. receives reserves that can be loaned out.
The demand curve for capital
a. is vertical. b. is horizontal. c. is derived from households' decisions concerning saving and spending. d. reflects the marginal productivity of capital.
Suppose a lazy monopolist's fixed costs are higher than the fixed costs of an efficient monopolist. In all other respects the monopolists are the same. Which of the following statements about this lazy monopolist is true?
A. It produces less than does the monopolist producing efficiently. B. Its total profit is lower than that of the monopolist producing efficiently. C. Its total profit is the same as that of the monopolist producing efficiently. D. Its total revenue is less than that of the monopolist producing efficiently.