Refer to the table. For these data, the law of increasing opportunity costs is reflected in the fact that:
Answer the question on the basis of the data given in the following production possibilities
table:
A. the amount of consumer goods that must be sacrificed to get more capital goods
diminishes beyond a point.
B. larger and larger amounts of capital goods must be sacrificed to get additional units of consumer goods.
C. the production possibilities data would graph as a straight downsloping line.
D. the economy's resources are presumed to be scarce.
B. larger and larger amounts of capital goods must be sacrificed to get additional units of consumer goods.
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For a perfectly competitive firm, the value of the marginal product is
A) the same thing as marginal factor cost. B) the same thing as marginal physical product. C) marginal physical product times the product price. D) marginal physical product times the wage rate.
In long-run equilibrium, every perfectly competitive firm
a. maximizes its output b. chooses its plant size and output level to operate at minimum long-run marginal cost c. chooses its plant size and output level to operate at minimum long-run average total cost d. earns an economic profit e. suffers an economic loss