A production possibilities frontier that is a downward-sloping straight line implies
A) economies of scale.
B) diseconomies of scale.
C) economies of scope.
D) no economies of scope.
D
You might also like to view...
When economists say goods are scarce, they mean:
A. consumers are too poor to afford the goods and services available. B. consumers are unwilling to buy goods unless they have very low prices. C. goods are generally freely available from nature in most countries. D. the desire for goods and services exceeds our ability to produce them with the limited resources available.
Diseconomies of scale occur
A. only in the long run. B. because of fixed costs. C. only in the short run. D. none of these.
Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan should specialize in both sandwiches and smoothies. B. Dan should specialize in smoothies, and Tracy should specialize in sandwiches. C. Dan should specialize in sandwiches, and Tracy should specialize in smoothies. D. Tracy should specialize in sandwiches and smoothies.
A scarce resource
A. is always very expensive. B. is hard to find. C. is not something managers need to worry about. D. has multiple uses.