When constructing a production possibilities frontier, which of the following assumptions is not made?
a. The economy produces only two goods or two types of goods.
b. Firms produce goods using factors of production.
c. The technology available to firms is given.
d. The quantities of the factors of production that are available are increasing over the relevant time period.
d
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If a firm launches a successful advertising campaign, then its
a. ATC curve shifts upward with a smaller rise at larger output levels b. ATC curve shifts upward with a smaller rise at smaller output levels c. demand curve shifts to the left and becomes flatter d. demand curve shifts to the right and becomes flatter e. demand curve shifts to the left and becomes steeper
When a tariff is imposed, a deadweight loss occurs because of: a. a loss in producer surplus
b. a fall in the price of the imported good. c. an increase in the supply of the good. d. a loss in total surplus.