According to the principle of increasing costs, as the production of one good expands, the opportunity cost of producing another unit of the good tends to increase

Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. The opportunity cost of one fence is _______ for Tom and ________ for Jerry. Therefore Tom should specialize in ______________.

A. 4 dishes; 2 dishes; dishes B. 16 dishes; 14 dishes; dishes C. 4 dishes; 2 dishes; fences D. 16 dishes; 14 dishes; fences

A 50 percent tax on the profits of a monopolist will

A. be totally shifted to the consumer. B. raise price and lower quantity. C. cause no change in profit-maximizing price and quantity. D. change price but not quantity.