Because resources tend to be specialized, increased production of military goods tends to
a. decrease the opportunity cost of more military goods.
b. increase the opportunity cost of more non-military goods.
c. increase the opportunity cost of more military goods.
d. change the position of the production possibilities curve.
e. alter the slope of the production possibilities curve.
c
You might also like to view...
As suppliers and potential suppliers of exhaustible resources continually calculate whether to extract now or in future, and how much to extract, an equilibrium arises when:
a. the cost of extracting such resources is equal to its price. b. the rate of return for such resources equals the rate of interest on alternative uses of the funds. c. the cost of extracting such resources is equal to the price of the commodity using these resources. d. the price of such resources is equal to the rate of interest of bank accounts and other interest-bearing investments. e. the rate of return on alternative investments is equal to the cost of extracting such resources.
Which of the following conditions is true for a purely competitive firm in long-run equilibrium?
A. P > MC = minimum ATC. B. P > MC > minimum ATC. C. P = MC = minimum ATC. D. P < MC < minimum ATC.