When all resources used in production are not perfectly substitutable,
a. specialization does not lead to greater production
b. the economy or firm is producing at a point outside of its production possibilities frontier
c. there will be constant opportunity costs
d. the production possibilities frontier will be concave (bowed outward)
e. the economy or firm will only produce one good in equilibrium
D
Economics
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The defining features of business cycles is that they
A. are inherently bad B. represent the underlying trend of real GDP C. are fluctuations about trend of real GDP D. measure prospects for future growth in the economy
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By using more labor to produce more output, a firm can always reduce its
A) marginal cost. B) average variable cost. C) average total cost. D) average fixed cost.
Economics