Author Question: Between points b and c in the above figure, the opportunity cost of 250 more bushels of corn is ... (Read 124 times)

cabate · **on:** Jun 29, 2018

Between points b and c in the above figure, the opportunity cost of 250 more bushels of corn is

A) 200 yards of cloth.
B) 250 yards of cloth.
C) 600 yards of cloth.
D) 800 yards of cloth.

Question 2

When does a subsidy that benefits consumers result in a more efficient allocation of a resource?

A) when the good being produced or consumed is not scarce
B) when the good being produced or consumed generates a negative externality
C) when the good being produced or consumed generates a positive externality
D) when the equilibrium price of the good is one that consumers don't like