The profit maximizing combination of two products to produce is found
A) Where the percentage change in the prices of the two products is equal.
B) Where the iso-revenue line is tangent to the production possibilities curve.
C) Where the marginal physical products of the two products is equal.
D) Where the iso-revenue line intersects the production possibilities curve.
Answer: B
Economics
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Which of the following is the correct way to calculate the unemployment rate?
A. [(unemployed)/(population)] × 100 B. [(unemployed)/(labor force)] × 100 C. [(labor force)/(population)] × 100 D. [(labor force)/(unemployed)] × 100
Economics
Consider a game in which all outcomes give the players the same total payoff. Explain why every outcome in such a game will be Pareto optimal.
What will be an ideal response?
Economics