The concave shape of the production possibilities frontier reflects
a. the law of comparative advantage
b. the law of absolute advantage
c. the law of increasing opportunity cost
d. the simplifying assumption of scarce resources
e. productive inefficiency
C
Economics
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A monopoly definitely incurs an economic loss if
A) it produces where its marginal revenue equals its marginal cost. B) its average total cost is greater than price. C) it cannot perfectly price discriminate. D) it price discriminates. E) The statement errs because a monopoly cannot incur an economic loss.
Economics
The monopoly illustrated in the figure above is unregulated and charges a single price. The deadweight loss created by the monopoly is
A) $0. B) $22.50. C) $45.00. D) $90.00.
Economics