We should expect to see home construction activity decrease when interest rates increase

When producing goods and services along a PPF, tradeoffs exist because

A) not all production is efficient. B) society has only a limited amount of productive resources. C) buyers and sellers often must negotiate prices. D) human wants and needs are limited at a particular point in time.

Before entering, fixed cost associated with the industry in question are sunk costs for

A) the incumbent firm. B) the outside firm. C) both firms. D) neither firm.