The curvature of an economy's production possibilities curve represents:
A) an increasing marginal cost of producing both goods.
B) an increasing opportunity cost of producing each good.
C) diminishing marginal returns to inputs.
D) increasing terms of trade between both goods.
B
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In using a prisoners' dilemma game to model the behavior of firms within an oligopoly, we are assuming that:
a. each firm seeks to act in its best interest. b. each firm seeks to act in the best interest of the industry as a whole. c. all firms will pursue the same strategy. d. each firm will pursue a different strategy.
Perfectly inelastic demand is represented by a demand curve which is ________, and relatively inelastic demand is represented by a demand curve which is ________
A) upward sloping; horizontal B) horizontal; downward sloping C) downward sloping; vertical D) vertical; downward sloping