"As output of one good expands, the opportunity cost of producing additional units of this good increases," is the law of _____________.
Fill in the blank(s) with the appropriate word(s).
increasing costs
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Refer to Figure 5-6. What is the market equilibrium output level?
A) Q2 B) Q1 + Q2 C) Q2 - Q1 D) Q1
Suppose residents of Toadhop live on the Quabache River, a river prone to flooding. Suppose there are 1000 (type A) people who value flood control more than the 1000 (type B) people. Type A Demand QD = 100 ? P Type B Demand QD = 50 ? P Where Q measures the quality of flood control. If the price of a unit of flood control is $100,000 and the citizens of Toadhop did not work together the amount
of flood control purchased would be a. 0 b. 10 c. 25 d. 70
Higher prices
A. are always against the public interest. B. may sometimes serve the public interest. C. should never be allowed. D. occur automatically for abundant goods.
The rule for the optimal use of any input states that
a. when MRP is less than price, profit will increase when more of that resource is utilized. b. when MRP is greater than resource price, profit will increase when more of that resource is utilized. c. when MRP equals price, profit will increase when less of that resource is utilized. d. when MRP is greater than resource price, profit will increase when less of that resource is utilized. e. resources should be used only if MRP exceeds product price.