Refer to the table below. If the profit for each unit of paper product is $2 and the profit for each unit of lumber is $5, the profit-maximizing quantity of lumber and paper products is located between which to points on Big Oaks' production possibilities frontier?
Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amount of paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable proportions. The above table summarizes Big Oaks production possibilities from each harvested tree.
B and C
B) A and B
C) C and D
D) D and E
C) C and D
You might also like to view...
If the United States has a trade deficit, this means that
A. Trade activity is limited to just a few goods. B. The trade balance is negative. C. Exports exceed imports. D. The U.S. economy produces more than it consumes.
If the prices of computer tablets rise, we would expect the number of tablet covers purchased to
A) increase. B) decrease. C) be equal to ten. D) be equal to one.
A decrease in the price of a good will a. increase demand
b. decrease demand. c. increase quantity demanded. d. decrease quantity demanded.
Effective signals
a. convey useful information from informed parties to uninformed parties. b. impose little or no cost on the signaler. c. cannot be conveyed accurately when there is an information asymmetry. d. raise the quantity sold but reduce the price sellers receive.