Jane produces only corn and cloth. Taking account of her preferences for corn and cloth
A) makes her production possibilities frontier straighter.
B) makes her production possibilities frontier steeper.
C) makes her production possibilities frontier flatter.
D) does not affect her production possibilities frontier.
D
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Innovation and incentives to come up with new products and production methods are stifled in larger markets
Indicate whether the statement is true or false
Assume that an individual consumes only hotdogs and colas and that the last hotdog consumed yields 15 utils and the last cola 10 utils. If the price of a hotdog is $1 and the price of a cola is $.50, we can conclude that the:
a. consumer should consume more hotdogs and less cola. b. price of hotdogs is too high. c. consumer should consume fewer hotdogs and more cola. d. consumer is in equilibrium.