Refer to Scenario 1 . If this economy is currently producing 30 crabs and 40 fish how is it possible for it to produce more of both?
What will be an ideal response?
The reason that the economy can produce more crabs and more fish is because it is currently operating inside the production possibilities frontier. As it stands now there are idle or inefficiently used resources that can be put to work to produce more of both goods.
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The shape of the short-run average total cost curve is a result of
A) economies of scale. B) diseconomies of scale. C) the law of diminishing marginal product. D) falling profits.
The elasticity of labor supply:
A. for a town should equal the elasticity of labor supply for a state. B. should be greater for a state than for a town because people can travel more easily between states than between towns. C. should be greater for a town than for a state because people are more likely to consider work in a neighboring town than in another state. D. for a town is not related to the elasticity of labor supply for a state.