Refer to the information provided in Figure 2.5 below to answer the question(s) that follow.
Figure 2.5Refer to Figure 2.5. The economy is currently at Point A. The opportunity cost of moving from Point A to Point B is the
A. 30 LCD televisions that must be forgone to produce 60 additional OLED televisions.
B. 90 LCD televisions that must be forgone to produce 20 additional OLED televisions.
C. 30 LCD televisions that must be forgone to produce 20 additional OLED televisions.
D. 120 LCD televisions that must be forgone to produce 40 additional OLED televisions.
Answer: C
You might also like to view...
Game theory shows that
A) sometimes pursuing profit maximization will not yield the highest joint profit. B) interdependencies between firms have to be taken into account when few firms dominate the market. C) in an oligopolistic market, firms are likely to collude. D) All of the above.
If capital and labor are perfect substitutes in a production function, the isoquants for this function will be
A. convex from above. B. concave from above. C. a straight line. D. any one of these depending on the particular combination of labor and capital employed.
Calculate the firm's total profit.
If MUA/PA> MUB /PB, an individual should choose to consume more of good A.
Answer the following statement true (T) or false (F)