Points that lie below the production possibilities curve are inefficient because:
A. too many goods are being produced.
B. producers face scarcity.
C. producing more of one good means producing less of the other.
D. more of one good could be produced without producing less of the other.
Answer: D
You might also like to view...
A grocery store shows the influence of competition when
a. no brands of peanut butter are on the store shelf b. one brand of peanut butter is on the store shelf c. two brands of peanut butter with the same price are on the store shelf d. two brands of peanut butter with different prices are on the store shelf
Ernie's Earmuffs produces 200 earmuffs per year at a total cost of $2,000 and $400 of this cost is fixed. If he increases output to 220 earmuffs, his total cost increases to $2100, and his fixed cost remains $400. What is Ernie's marginal cost per earmuff?
A) $105 B) $35 C) $9.55 D) $5