If a country has a bowed out (concave to the origin) production possibility frontier, then production is said to be subject to
A) constant opportunity costs.
B) decreasing opportunity costs.
C) first increasing and then decreasing opportunity costs.
D) increasing opportunity costs.
D
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With regard to the rule of caveat emptor in colonial America, which of the following does not apply?
(a) "Let the buyer beware." (b) This rule largely replaced the earlier rule of markets, market overt, by late colonial times. (c) It could be applied anywhere without the protective regulations of colonial officials. (d) It was meant to cover fraud, and aggrieved buyers could always sue sellers in civil courts for damages.
The total utility from consuming five muffins is 14, 24, 35, 43, and 50 utils, respectively. Marginal utility begins to diminish after consuming the first muffin
a. True b. False Indicate whether the statement is true or false
Residential mortgages historically carried a capital requirement of 4 percent. Why did these mortgages, bundled as part of the mortgage-backed securities issued by investment banks, turn out to be far more risky than historically indicated?
a. Rating agencies miscalculated the historical risk of traditional fixed-rate residential mortgages. b. Investment banks leveraged these mortgage-backed securities more than was allowable under SEC rules. c. Lower mortgage lending standards increased the likelihood that defaults would occur. d. Investment banks held too much capital relative to these mortgage-backed securities.
If the total cost function is TC = 10Q3 - 50Q2 + 1000Q + 500, what is the equation for AVC?
What will be an ideal response?