As you move down the production possibility frontier, the absolute value of the marginal rate of transformation

A. increases.
B. initially decreases, then increases.
C. decreases.
D. initially increases, then decreases.


Answer: A

Economics

You might also like to view...

If the accounting profit equals $200,000 and implicit costs equal $40,000, the economic profit equals

a. $240,000. b. $200,000. c. $160,000. d. $40,000.

Economics

Describe the difference in market structure between monopoly and oligopoly

What will be an ideal response?

Economics

Economic development encompasses which of the following measures?

a. The political environment b. All of the answers are correct. c. Education d. Economic growth

Economics

A firm's ______ are costs that are incurred even if there is no output. In the short run, these costs _____ as production increases.

A. fixed costs; increase B. fixed costs; do not change C. variable costs; increase D. variable costs; do not change

Economics