The bowed-out shape of the production possibilities curve shows that as more of one product is produced,
a. the opportunity cost per unit will increase.
b. the opportunity cost per unit will decrease.
c. the opportunity cost per unit stays the same.
d. the production possibilities curve shifts inward.
a. the opportunity cost per unit will increase.
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A farmer produces oranges and sells them to Fresh Juice, which makes orange juice. The oranges produced by the farmer are called
a. inventory goods. b. transitory goods. c. final goods. d. intermediate goods.
Using the SPENT factors, discuss things that might shift the supply curve for bags of roasted coffee. Give one example for each factor.
What will be an ideal response?
A perfectly competitive firm is maximizing profits in the short run. This implies that the firm is earning the most economic profits possible, which
A) must be positive. B) must be either zero or positive. C) can be positive, negative, or zero. D) exist at the point at which price equals total cost.
Fixed costs are sometimes referred to as _________ costs.
Fill in the blank(s) with the appropriate word(s).