Refer to the above figure. How do you describe what is happening as the economy moves from point A to point B?
A) The economy has acquired new resources that are well suited for producing wool.
B) Land that was once used to grow wheat is now being used to graze sheep.
C) The economy is producing more bread by choosing to produce less wool.
D) The technology for growing wheat has improved.
B
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To induce an increase in the quantity demanded of its product, a monopolist must reduce the
A) quality of its product and thereby generate a downward shift its ATC curve. B) price of its product and thereby generate a rightward shift in its demand curve. C) price of its product and thereby generate a rightward movement along its demand curve. D) quality of its product and thereby generate a downward movement along its ATC curve.
A production function is a relationship between inputs and
a. quantity of output. b. revenue. c. costs. d. profit.