Gabriel operates a ranch in Idaho where he raises cattle and grows potatoes. The figure above illustrates his production possibilities frontier. What is Gabriel's opportunity cost of raising another 100 cows?
A) 5.0 tons of potatoes
B) 3.0 tons of potatoes
C) 1.25 tons of potatoes
D) 100 cows
E) 1.0 ton of potatoes
C
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In the short run, changes in output can only be brought about by a change in the quantity of variable inputs
Indicate whether the statement is true or false
The diagram concerns supply adjustments to an increase in demand (D 1 to D 2 ) in the immediate market period, the short run, and the long run. In the immediate market period, the increase in demand will:
A. have no effect on either equilibrium price or quantity.
B. increase equilibrium price but not equilibrium quantity.
C. increase equilibrium quantity but not equilibrium price.
D. increase both equilibrium price and quantity.
The relative concept of poverty is based on how far behind average income a particular family gets.
Answer the following statement true (T) or false (F)
The marginal product of labor is the:
A. change in labor necessary to produce an additional unit of output. B. cost of additional labor necessary to produce an additional unit of output. C. change in output resulting from adding an additional unit of labor. D. change in revenue resulting from adding an additional unit of labor.