If Farmer Sam MacDonald can produce 200 pounds of cabbages and 0 pounds of potatoes or 0 pounds of cabbages and 100 pounds of potatoes and faces a linear possibilities curve for his farm, the opportunity cost of producing an additional pound of cabbage is ____
A) 1/2
B) 2
C) 100
D) 200
Ans: A) 1/2
You might also like to view...
Refer to Figure 2-11. Which country has a comparative advantage in the production of cotton?
A) Pakistan B) Indonesia C) They have equal productive abilities. D) neither country
How can break-even analysis be used to project the level of operation needed to achieve a targeted profit level?
What will be an ideal response?
Maurice Richard loves to play hockey. He would play the minor leagues and the major leagues with equal gusto. Suppose he earned $35,000 playing for the minor league Urbana Tigers and "gets the call" from the Dallas Stars, a major league team. He excitedly tells his wife, an economist, that his wage is now $379,000 (that's the contract he signed) and she informs him that his wage-related rent is
a. $344,000 b. $379,000 c. $35,000 d. $414,000 e. $0 because he signed the "wage" contract
Which of these instances would constitute labor-market discrimination? Courtney and Nicole are identical in all of their labor-market characteristics except that Courtney earns a higher salary than Nicole because
a. Courtney is beautiful and Nicole is not. b. Courtney is 40 years old and Nicole is 60 years old. c. Courtney works the night shift and Nicole works the day shift. d. Courtney attended on the job-training seminars which allows her to do tasks Nicole is not qualified for.