1. What are the effects of increasing opportunity cost on the shape of economy's production possibilities...
1. What are the effects of increasing opportunity cost on the shape of economy's production possibilities frontier and what is the source of increasing opportunity costs
2. An automobile dealership makes the mistake of setting a price above the market equilibrium price foe its product.What action should this dealership take and why should it take that action?
Homework Answers
1 - The increasing trend of the opportunity cost means that more and more resources have to be given up in production of one good to increase the production of other. The effect of this increasing opportunity cost is the downward sloping or the negative slope of the PPC curve.
As more and more resources are applied in the production of one good , production of other good decreases due to the limited availability of the resources.
2 - If the price has been set above the equlibrium price , this means that the situation of the excess supply will exist in market. There will be lower demand for product as the price is above the equlibrium price. Hence if the dealer decreases the price , and rectifies its mistake , the demand will increase at lower price and equlibrium will be established.
Add Answer to:
1. What are the effects of increasing opportunity cost on the
shape of economy's production possibilities...
1. A production possibilities frontier will have a curved or “bowed out” shape if: opportunity costs...
1.
A production possibilities frontier will have a curved or
“bowed out” shape if:
opportunity costs are increasing.
resources are scarce.
the economy is growing.
opportunity costs are declining.
2.
(Figure: Graph Interpretation) In the graph, _____ is the
dependent variable and the slope of the line is _____.
R; positive
S; positive
S; negative
R; negative
3.
If a price floor is set below the market price, it is:
ineffective.
effective.
efficient.
inefficient
4.
Total surplus is calculated as:...
The curved shape of the production possibilities frontier can be explained by A. Increasing cost of...
The curved shape of the production possibilities frontier can be explained by A. Increasing cost of production B. Constant cost of production c. Scarcity d. Economic growth
according to the graph of the production possibilities frontier, what is the opportunity cost of the...
according to the graph of the production possibilities
frontier, what is the opportunity cost of the second widget?
ResourcesHint Check Answer K Question 5 of 26 Consider the graph. According to the graph of the production possibilities frontier, what is the opportunity cost of the second widget? 10 O about 3 gizmos O less than 0.5 gizmos O about 2 widgets O about 7 widgets 0123 45 6789 10 What best explains the shape of the production possibility frontier in...
QUESTION 10 A production possibilities frontier with increasing opportunity cost is considered and one with constant...
QUESTION 10 A production possibilities frontier with increasing opportunity cost is considered and one with constant opportunity cost is considered A concave, convex OB.convex, concave. C.concave, a straight line. Dvertical; horizontal QUESTION 11 The idea that all income ultimately goes to households, which then use it to buy goods and services from firms, is a central idea of the A production possibilities frontier B. supply and demand model C. circular flow diagram D.classical model
able Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I. The opportunity cost of producing...
able Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I. The opportunity cost of producing the third unit of consumer goods is units of capital goods. Table: Production Possibilities Schedule I Alternatives Consumer goods per period 0 Capital goods per period 30 28 24 1810 8 2 (Figure: Comparative Advantage) Use Figure: Comparative Advantage. Westland has a comparative advantage in producing: Figure: Comparative Advantage Eastland and Westland produce only two goods, boxes of peaches and boxes of oranges, and...
According to the graph of the production possibilities frontier, what is the opportunity cost of the...
According to the graph of the production possibilities frontier, what is the opportunity cost of the third widget? Consider the graph 10 O about 6 widgets O about 3 gizmos O about 7.5 widgets O about 0.5 gizmos 0 1 2 3. 4 5 6 7 8 9 10 Widgets What best explains the shape of the production possibility frontier in the graph? O This economy has the capacity to produce different combinations of widgets and gizmos O Some resources...
A the production possibilities frontier (PPF) is bowed outward as a result of 1)constant opportunity costs....
A the production possibilities frontier (PPF) is bowed outward as a result of 1)constant opportunity costs. 2)increasing opportunity costs. 3)decreasing opportunity costs. 4)scarcity. 5)choice.
46) A shift outwards of the nation's production possibilities frontier can occur due to: 46) A)...
46) A shift outwards of the nation's production possibilities frontier can occur due to: 46) A) a change in the amounts of one good desired. B) an increase in the labor force C) a natural disaster like a hurricane or bad earthquake D) a reduction in unemployment. 48) If a nation's production possibilities frontier moves outward, this represents: A) economic growth. B) an impossible situation. C) rising prices of the two goods on the production possibilities frontier model. D) a...
5. On the graph below, using Production Possibilities Curves with increasing Marginal Opportunity Costs, show what...
5. On the graph below, using Production Possibilities Curves with increasing Marginal Opportunity Costs, show what happens when there is Biased Growth towards the Tomatoes industry. Show the Production Possibilities Curve before the growth takes place. Draw a new Production Possibilities Curve with Biased Growth towards the Tomatoes industry. (3 points) Tomatoes Refrigerators
Q1. Water supply in small towns is a natural monopoly making an economic loss. Draw a diagram cle...
Q1. Water supply in small towns is a natural monopoly making an economic loss. Draw a diagram clearly identifying an economic loss for this monopoly and explain how the government can address the issue of market failure in this case. Q2. Using a diagram, explain why the government doesn’t want competition in urban water supply (hint: LRAC). Q3. Use a demand and supply diagram to explain what happens to the equilibrium quantity and the equilibrium price of bicycles if the...
1.
A production possibilities frontier will have a curved or
“bowed out” shape if:
opportunity costs are increasing.
resources are scarce.
the economy is growing.
opportunity costs are declining.
2.
(Figure: Graph Interpretation) In the graph, _____ is the
dependent variable and the slope of the line is _____.
R; positive
S; positive
S; negative
R; negative
3.
If a price floor is set below the market price, it is:
ineffective.
effective.
efficient.
inefficient
4.
Total surplus is calculated as:...
according to the graph of the production possibilities
frontier, what is the opportunity cost of the second widget?
ResourcesHint Check Answer K Question 5 of 26 Consider the graph. According to the graph of the production possibilities frontier, what is the opportunity cost of the second widget? 10 O about 3 gizmos O less than 0.5 gizmos O about 2 widgets O about 7 widgets 0123 45 6789 10 What best explains the shape of the production possibility frontier in...
QUESTION 10 A production possibilities frontier with increasing opportunity cost is considered and one with constant opportunity cost is considered A concave, convex OB.convex, concave. C.concave, a straight line. Dvertical; horizontal QUESTION 11 The idea that all income ultimately goes to households, which then use it to buy goods and services from firms, is a central idea of the A production possibilities frontier B. supply and demand model C. circular flow diagram D.classical model
able Production Possibilities Schedule I) Use Table: Production Possibilities Schedule I. The opportunity cost of producing the third unit of consumer goods is units of capital goods. Table: Production Possibilities Schedule I Alternatives Consumer goods per period 0 Capital goods per period 30 28 24 1810 8 2 (Figure: Comparative Advantage) Use Figure: Comparative Advantage. Westland has a comparative advantage in producing: Figure: Comparative Advantage Eastland and Westland produce only two goods, boxes of peaches and boxes of oranges, and...
According to the graph of the production possibilities frontier, what is the opportunity cost of the third widget? Consider the graph 10 O about 6 widgets O about 3 gizmos O about 7.5 widgets O about 0.5 gizmos 0 1 2 3. 4 5 6 7 8 9 10 Widgets What best explains the shape of the production possibility frontier in the graph? O This economy has the capacity to produce different combinations of widgets and gizmos O Some resources...
46) A shift outwards of the nation's production possibilities frontier can occur due to: 46) A) a change in the amounts of one good desired. B) an increase in the labor force C) a natural disaster like a hurricane or bad earthquake D) a reduction in unemployment. 48) If a nation's production possibilities frontier moves outward, this represents: A) economic growth. B) an impossible situation. C) rising prices of the two goods on the production possibilities frontier model. D) a...
5. On the graph below, using Production Possibilities Curves with increasing Marginal Opportunity Costs, show what happens when there is Biased Growth towards the Tomatoes industry. Show the Production Possibilities Curve before the growth takes place. Draw a new Production Possibilities Curve with Biased Growth towards the Tomatoes industry. (3 points) Tomatoes Refrigerators
Most questions answered within 3 hours.
-
The extent to which assets are financed by borrowed funds and
other liabilities is indicated by:...
asked 4 minutes ago -
Explain in detail
Germany is the fifth largest economy
explain what goods and services Germany specializes...
asked 19 minutes ago -
The density of platinum is 21.45 g/mL. If a cube of platinum
with a mass of...
asked 24 minutes ago -
Accounts Receivable
Sales
A/R Posting
Extended Sales Invoice
Packing Slip
Compare invoice to packing slip 2...
asked 27 minutes ago -
Michaella, age 23, is a full-time law student and is claimed by
her parents as a...
asked 27 minutes ago -
Why are polymers not typically casted into products?
asked 44 minutes ago -
When rolling a die 129 times, what is the probability of rolling
a 6 no more...
asked 1 hour ago -
4. A call option currently sells for $7.75. It has a strike
price of $85 and...
asked 50 minutes ago -
1.
You need to prepare 10.0 liters of an acid aqueous solution with a
pH of...
asked 53 minutes ago -
Along an aggregate supply curve, if the level of output is less
than the natural level...
asked 53 minutes ago -
By 2025, annual consumption in emerging markets will total $30
trillion and contribute more than ________...
asked 58 minutes ago -
At what point does reformation cease to be a viable option for
those who are oppressed...
asked 1 hour ago