At a perfectly competitive equilibrium with production and trade, the slope of the production possibility curve will be
A) equal to the slope of the price line faced by the consumers.
B) steeper than the slope of the price line faced by consumers.
C) flatter than the slope of the price line faced by consumers.
D) either steeper or flatter than the price line faced by the consumers, depending upon the relative preferences of the consumers.
A
You might also like to view...
In the above figure, the equilibrium price of a paperback book is $6 per book and the equilibrium quantity is 3 million books. The National Literature Board convinces the government to impose a price ceiling of $6 per book
At this price, the quantity of books supplied to the market will be A) 3 million a month and will equal the quantity demanded. B) less than 3 million a month and will exceed the quantity demanded. C) less than 3 million a month and will be less than the quantity demanded. D) more than 3 million a month and will exceed the quantity demanded.
Regulation Q was repealed in the __________ by the __________
A) early 1970s; Garn-St. Germain Act B) late 1970s; Depository Institutions Deregulation and Monetary Control Act C) late 1980s; Reigle-Neil Act D) early 1980s; Depository Institutions Deregulation and Monetary Control Act