Goods that can be produced at a constant or very gently rising opportunity cost have
A) an elastic demand.
B) an inelastic demand.
C) an inelastic supply.
D) an elastic supply.
E) a unit elastic demand.
D
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A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:Production Possibilities ScheduleProductABCDEFSteel012345Wheat100907555300In moving stepwise from possibility A to B to C … to F, the opportunity cost of a unit of steel in terms of wheat
A. increases at first then decreases. B. decreases. C. remains constant. D. increases.
Suppose that many people who earn a living designing apps decide they can make more money selling honey and switch occupations. How will this change affect the number of apps supplied by producers?
A. supply decreases B. supply does not change C. supply increases
When a nation exports a good or service in which it has a comparative advantage, employment in that industry
A) decreases. B) stays the same. C) increases. D) might change, but more information about what else the country exports is needed to determine if employment increases, decreases, or does not change. E) might change, but more information about what the country imports is needed to determine if employment increases, decreases, or does not change.
In the above figure, between 20 and 25 units per hour, the firm experiences
A) economies of scale. B) diseconomies of scale. C) constant returns to scale. D) increasing total fixed costs.