Figure 2-3
shows the production possibilities frontier for a music processing plant that can produce both compact disks and cassettes. The opportunity cost of moving from point B to C is
a.
20 cassettes
b.
120 compact disks
c.
100 cassettes
d.
60 compact disks
e.
180 compact disks
d
You might also like to view...
Suppose that a price ceiling is imposed because the market equilibrium is perceived to be too high. Which of the following rationing schemes makes no sense?
a. rationing fish to those willing to pay the highest price b. rationing fish by means of a lottery c. rationing fish to the elderly first d. rationing fish on a first-come, first-served basis e. rationing fish according to family size
Suppose a Dell computer that sells for $2,000 in the U.S. is exported to the Netherlands. If the exchange rate is 2 Dutch guilders per U.S. dollar, then according to purchasing power parity theory, what would be the Dutch guilder price of the computer in the Netherlands?
a. 5000 guilders b. 1000 guilders c. 2000 guilders d. 4000 guilders