Price elasticities are calculated for four goods, and the values are: 4.5; 3.7; 1.0; 0.2. Which price elasticity is most elastic?

If regulators required firms in monopolistically competitive markets to set price equal to marginal cost,

a. firms would most likely experience economic losses. b. firms would also operate at their efficient scale. c. new firms would likely to enter the market. d. the most efficient firms would not likely to be affected.

If the opportunity costs of producing a good increase as more of that good is produced, the economy's production possibility frontier will be

A. a negatively sloped straight line. B. negatively sloped and "bowed inward" toward the origin. C. negatively sloped and "bowed outward" from the origin. D. a positively sloped straight line.