As we move along the production possibilities frontier,
A) the production of one good increases as the production of the other good decreases.
B) more of both goods can be produced.
C) the possibilities of tradeoffs diminish.
D) a tradeoff is not possible because nations need all goods.
E) less of both goods can be produced.
A
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Based on the data in the table above, ice cream and cake are ________ goods
A) inferior B) normal C) substitute D) complementary E) Both answers B and D are correct.
A monopolist faces a demand curve given by P = 20 - Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 - 2Q and its marginal cost is MC = 2Q. What is its profit-maximizing output level?
a. 5 b. 6 c. 7 d. 8
Suppose that increases in government expenditures and large budget deficits are projected for the next decade. If strong growth is observed during this decade, this would be most consistent with
The relationship between inputs and outputs is known as
A. marginal product. B. manufacturing. C. business. D. a production function.