The law of increasing additional cost exists because
A. the cost of resources of the products increase.
B. the demand for the product increases.
C. resources are not perfectly adaptable to both production processes.
D. the cost of resources of the products decrease.
Answer: C
You might also like to view...
Elasticity is a measure of
a. the slope of a linear demand curve b. the slope of a supply curve c. relative responsiveness d. economic welfare e. consumer tastes
Suppose that for Emily, DVDs and trips to the movie theater are perfect substitutes. Currently, Emily is spending all of her income on trips to the movie theater. If the price of DVDs doubles, the substitution effect will
a. be two times the income effect. b. be half the income effect. c. be zero. d. always increase the number of trips to the movie theater Emily makes.
One major advantage of a flat tax over the current tax system would be ______.
a. higher earners contributing a greater share b. the ability of tax payers to use more exemptions c. increased employment opportunities for tax accountants d. a simplification of the tax filing process
The percentage change in the demand for one good divided by the percentage change in the price of a related good is the
A) price elasticity of demand. B) price elasticity of supply. C) cross price elasticity of demand. D) income elasticity.