The law of increasing opportunity cost says that:
A) opportunity costs of production always tend to increase.
B) increases in wages cause increases in the opportunity costs of production.
C) as output increases for one good on its production possibilities curve, the opportunity cost of additional units of the other good will be greater and greater.
D) along a production possibilities curve, as output increases in the production of one good, the opportunity costs of additional units of the other good will be less and less.
Ans: C) as output increases for one good on its production possibilities curve, the opportunity cost of additional units of the other good will be greater and greater.
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If there are 200 physicians per 100,000 population in the United States generally, but over 500 per 100,000 population in San Francisco,
A) physicians are not scarce in San Francisco. B) physicians particularly enjoy living and working in San Francisco, for financial and other reasons. C) residents of San Francisco necessarily need more medical services than the average American. D) there is a shortage of patients in San Francisco. E) there is a surplus of physicians in San Francisco.
A monopoly:
a. can increase price and increase output at the same time. b. can charge any price it wants and still sell all of its output. c. can sell any output it produces provided it accepts the market price. d. must lower price in order to increase output. e. faces a perfectly elastic demand curve.