The figure above shows a production possibilities frontier. In the figure, when the economy moves from point D to point C, the opportunity cost of producing one more DVD ________, and when it moves from point C to D, the opportunity cost of producing
one more cell phone ________. A) increases; increases
B) increases; decreases
C) decreases; decreases
D) decreases; increases
E) increases; remains the same
A
You might also like to view...
By setting MR = MC, a competitive firm decides to sell 100 units when the market price is $20. The average cost of producing the 100 units is $18 per unit. If the firm has fixed costs of $500, then the firm should
a. shutdown b. expand production c. exit the industry d. increase their price
The revenue received from the sale of ________ of a product is a marginal benefit to the firm
A) an additional unit B) only profitable units C) the total number of units D) no units
What is the relationship between price, marginal revenue, and total revenue for a monopolist?
What will be an ideal response?
In the United States, the income distribution is shaped like a:
A. square. B. diamond. C. pentagon. D. pyramid.