Which of the following is an illustration of the law of increasing opportunity costs?
What will be an ideal response?
As more cars are produced, the opportunity cost of each additional car is greater than for the preceding unit.
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The above figure shows the marginal social benefit and marginal social cost curves of doughnuts in the nation of Kaffenia. At Kaffenia's efficient quantity of doughnuts
A) total consumer surplus is zero. B) total producer surplus is zero. C) consumer surplus exceeds producer surplus by the greatest possible amount. D) the sum of consumer surplus and producer surplus is maximized.
Which would not increase the productivity of labor?
A) An increase in the size of the labor force B) An increase in the quality of capital C) An increase in the quantity of capital D) An increase in technology E) An increase in the efficiency of energy
When there is an Equilibrium (or a Nash Equilibrium), we expect that:
a. once the firms get there, no one will change their strategy. b. firms will tend to select a randomized strategy. c. neither firm will care what it does. d. this is always a dominated strategy.
An example of traditional public-goods legislation is
a. price supports for dairy products b. a system of justice c. a tattoo removal program in San Luis Obispo, California d. tort-reform e. a labor union issue