The opportunity cost of increased production of some good can be measured with
a. the slope of a ray to the production possibilities curve.
b. the area under the curve of a production possibilities curve.
c. the area of the rectangle bounded by the axes and the point on the production possibilities curve.
d. the slope of the production possibilities curve.
e. All of the above are correct.
d
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A dominant strategy can best be described as
A) a strategy taken by a dominant firm. B) the strategy taken by a firm in order to dominate its rivals. C) a strategy that is optimal for a player no matter what an opponent does. D) a strategy that leaves every player in a game better off. E) all of the above
In the dominant firm model as evidenced by the production of iPods by Apple, the entrance of the competitive fringe firms has what effect on the dominant firm?
A) Its price is lower, but it produces more output. B) Its price is lower, and it produces less output. C) Its price is the same, but it produces less output. D) Its price is higher, but it produces more output.