The above figure shows the production possibility frontier for a country. Suppose the country is producing at point E. What would be the opportunity cost to increase the production of wine to 9 thousand bottles?
A) 12 tons of rice
B) 15 thousand bottles of wine
C) 9 thousand bottles of wine
D) 3 tons of rice
E) Nothing, it is a free lunch.
D
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If two factors of production are substitutes in production, then a decrease in plant size will make the total product curve
a. higher and steeper. b. lower and steeper. c. higher and more shallow. d. lower and more shallow.
Countries tend to use the labor processes that ______.
a. they have had the longest b. take advantage of their most plentiful resources c. utilize their most expensive resources d. rely on their most scarce resources
Suppose the MC Hammer Company produces hammers. The number of hammers it can produce each hour depends on the number of workers it hires, as shown in the accompanying table. In addition, each hammer can be sold for $2 more than the cost of the materials needed to produce it.Number of workers per hourNumber of hammers per hour00120236348456560 What is the value of the marginal product of the 2nd worker hired each hour?
A. $36 B. $16 C. $32 D. $72
The prisoners' dilemma naturally leads prisoners to the best possible outcome.
Answer the following statement true (T) or false (F)