This topic contains a solution. Click here to go to the answer

Author Question: If the law of increasing opportunity cost holds, can the production possibility frontier be a ... (Read 87 times)

P68T

  • Hero Member
  • *****
  • Posts: 509
If the law of increasing opportunity cost holds, can the production possibility frontier be a straight line?
 
  What will be an ideal response?

Question 2

What is meant by the expected rate of return?
 
  What will be an ideal response?



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

Jadwiga9

  • Sr. Member
  • ****
  • Posts: 316
Answer to Question 1

No. If the production possibility curve is a straight line, this would imply that the marginal rate of transformation is constant. This cannot be the case if the law of increasing opportunity costs holds.

Answer to Question 2

The expected rate of return is the annual rate of return that a firm expects to obtain through a capital investment.




P68T

  • Member
  • Posts: 509
Reply 2 on: Jun 29, 2018
Thanks for the timely response, appreciate it


carojassy25

  • Member
  • Posts: 299
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

Symptoms of kidney problems include a loss of appetite, back pain (which may be sudden and intense), chills, abdominal pain, fluid retention, nausea, the urge to urinate, vomiting, and fever.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

More than 50% of American adults have oral herpes, which is commonly known as "cold sores" or "fever blisters." The herpes virus can be active on the skin surface without showing any signs or causing any symptoms.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

For a complete list of videos, visit our video library