Author Question: As we move along a bowed-out production possibility frontier, producing more tacos and less pizza, ... (Read 34 times)

sjones · **on:** Jun 29, 2018

As we move along a bowed-out production possibility frontier, producing more tacos and less pizza, the opportunity cost of a pizza ________.

A) increases
B) remains the same
C) decreases
D) increases and then decreases

Question 2

Refer to the scenario above. If they are the only bidders in the auction and each bidder uses his optimal strategy, the maximum price the winner is likely to pay is ________.

A) 210
B) 350
C) 500
D) 625