What shape does a production possibilities frontier take if it displays increasing opportunity costs? What shape does a production possibilities frontier take if it displays constant opportunity costs? Which shape is most common in production
situations?
A production possibilities frontier which displays increasing opportunity costs is bowed outward. A production possibilities frontier which displays constant opportunity costs is linear. A bowed-out production possibilities frontier is most common in production situations.
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Suppose a basket of goods and services has been selected to calculate the CPI and 2012 has been chosen as the base year. In 2012, the basket's cost was $80.00; in 2013, the basket's cost was $84; and in 2014, the basket's cost was $87.60 . The value of the CPI was
a. 100 in 2012. b. 105 in 2013. c. 109.5 in 2014. d. All of the above are correct.
If supply is more elastic than demand, the seller will pay _____ of a tax.
Fill in the blank(s) with the appropriate word(s).