If an economy's production possibility frontier is negatively sloped and "bowed outward" from the origin, then the opportunity cost of producing a good
A. decreases as more of that good is produced.
B. increases as more of that good is produced.
C. remains constant as more of that good is produced.
D. remains constant as less of that good is produced.
Answer: B
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The economic benefit of a per-unit subsidy accrues disproportionately to the side of the market that is more price-inelastic.
Answer the following statement true (T) or false (F)
An increase in the interest rate, other things constant, will: a. shift the demand for loanable funds curve to the right. b. shift the demand for loanable funds curve to the left. c. decrease the quantity of loanable funds supplied
d. decrease the quantity of loanable funds demanded. e. shift the supply of loanable funds curve to the right.
Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers the firm produces 90 units of output. Fixed costs of production are $6 and the variable cost per unit of labor is $10 . The marginal product of the seventh unit of labor is 4 . Given this information, what is the average variable cost of production when the firm hires
7 workers? a. $12.67 b. $11 c. 81 cents d. 75 cents
When a perfectly competitive, well-functioning market is not in equilibrium:
A. total surplus can be increased by a change in market price. B. there are exchanges that can make some better off without someone becoming worse off. C. the market is not efficient. D. All of these are true.