Which statement is an economic rationale for the law of increasing opportunity cost?
A. The economy is employing all of its available resources.
B. Many economic resources are better at producing one product than another.
C. The economy is achieving productive efficiency by producing goods and services at the least cost.
D. In any economy, the state of technology is changing and resources are variable.
Answer: B
You might also like to view...
Refer to Table 15-1. What is the firm's profit-maximizing output and what is the price charged to sell this output?
A) P = $65; Q = 14 B) P = $70; Q = 13 C) P = $80; Q = 11 D) P = $85; Q = 10
Using the above figure, the price facing the perfectly competitive firm in the long run will be
A) P1. B) P2. C) P3. D) P4.
Marginal benefit refers to:
A. the average benefits that arise by using an additional unit of the managerial control variables. B. the change in average benefits arising from a change in the control variable. C. the additional benefits that arise by using an additional unit of the managerial control variables. D. None of the statements associated with this question are correct.
________ is the average cost of producing each unit of output.
A. Average variable cost B. Marginal cost C. Average total cost D. Average fixed cost