Betty and Ann live on a desert island. With a day's labor, Ann can produce 8 fish or 4 coconuts; Betty can produce 6 fish or 2 coconuts
Ann's opportunity cost of producing 1 coconut is ________ and she should specialize in the production of ________. A) 8 fish per coconut; fish
B) 2 fish per coconut; coconuts
C) 6 fish per coconut; coconuts
D) 0 fish per coconut; coconuts
B
You might also like to view...
The sum of all the net benefits received by the parties to a transaction is called
A) consumer surplus. B) producer surplus. C) cooperative surplus. D) deadweight loss.
The perfectly competitive firm's short-run supply curve is the same as the
a. supply curve of all other firms in the industry b. upward-sloping portion of its marginal cost curve c. upward-sloping portion of its marginal cost curve at or above minimum average variable cost d. upward-sloping portion of its average variable cost curve e. market demand curve
Which of the following is true?
a. The price charged by a monopolistically competitive firm is equal to that charged by a perfectly competitive firm. b. The price charged by a monopolistically competitive firm is less than that charged by a perfectly competitive firm. c. The output produced by a monopolistically competitive firm is more than that produced by a perfectly competitive firm. d. The output produced by a monopolistically competitive firm is equal to that produced by a perfectly competitive firm.
Refer to the diagram for a monopolistically competitive firm in short-run equilibrium. This firm's profit-maximizing price will be:
A. $10.
B. $13.
C. $16.
D. $19.