The following economy produces two products.ProductsProduction Possibilities?ABCDEFSteel012345Wheat100907555300Refer to the above table. A change from possibility C to B means that:
A. 1 unit of steel is given up to get 15 more units of wheat.
B. 1 unit of steel is given up to get 75 units of wheat.
C. 2 units of steel are given up to get 75 units of wheat.
D. 2 units of steel are given up to get 15 more units of wheat.
Answer: A
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A free good is:
A) also a scarce good. B) a relatively abundant good. C) a good with no opportunity cost. D) a good with relatively low opportunity cost.
The marketing of the first ballpoint pen by Milton Reynolds showed
A) that being the first firm to market a new product can result in a natural monopoly. B) that first-mover advantages can make it more difficult for new firms to enter a market and compete against the first mover. C) how important it is to receive patent protection for a new product. D) that being the first firm to market a product may not lead to a long-lived advantage over later entrants into the market.