Refer to the table below. If the profit for each unit of paper product is $3.00 and the profit for each unit of lumber is $13.50, 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.
A) B and C
B) D and E
C) E and F
D) C and D
B) D and E
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Refer to Table 2-4. Assume Dina's Diner only produces sliders and hot wings. A combination of 50 sliders and 50 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.
The government purchases component of aggregate demand includes
I. all purchases by government agencies of goods and services produced by firms. II. direct production by government agencies themselves. III. government expenditures on transfer payments. A) I only B) I and II only C) I and III only D) I, II, and III
The Keynesian mechanism through which monetary policy affects the price level, real GDP, and employment depends on the impact of the:
A. interest rate on savings. B. inflation on investment. C. interest rate on investment. D. interest rate on bond prices.
Suppose some firms exit a monopolistic competition industry. We would expect the demand curve of a firm already in the industry to:
A. become more elastic. B. remain the same since entering firms serve other customers in the market. C. shift to the right. D. shift to the left.