This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Refer to Scenario 1 . Assume this economy could either be at Point B or Point C. From which of these ... (Read 75 times)

APUS57

  • Hero Member
  • *****
  • Posts: 571
on: Jun 29, 2018
Refer to Scenario 1 . Assume this economy could either be at Point B or Point C. From which of these points is it more costly to produce more crabs? Explain your answer.
 
  What will be an ideal response?

Question 2

Tying salaries of top managers to the profits of the firm is a way to reduce the effect of the principal-agent problem.
 
  Indicate whether the statement is true or false


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

yifu223

  • Sr. Member
  • ****
  • Posts: 302
Reply #1 on: Jun 29, 2018
Answer to Question 1

It's more costly to produce more crabs from Point C than it is to produce more crabs from Point B. The reason is that as you move up the production possibilities frontier the more crabs you produce the greater the amount of fish the economy will have to give up to produce them. For example from Point B the opportunity cost of producing 15 more crabs is twenty fish. However, if we start from Point C and wish to produce 15 more crabs we have to give up 30 fish.

Answer to Question 2

TRUE


APUS57

  • Hero Member
  • *****
  • Posts: 571
Reply #2 on: Jun 29, 2018
Thank you :)


yifu223

  • Sr. Member
  • ****
  • Posts: 302
Reply #3 on: Jun 29, 2018
Happy to help you


« previous next »
 

Did you know?

The human body produces and destroys 15 million blood cells every second.

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

The human body's pharmacokinetics are quite varied. Our hair holds onto drugs longer than our urine, blood, or saliva. For example, alcohol can be detected in the hair for up to 90 days after it was consumed. The same is true for marijuana, cocaine, ecstasy, heroin, methamphetamine, and nicotine.

Did you know?

One way to reduce acid reflux is to lose two or three pounds. Most people lose weight in the belly area first when they increase exercise, meaning that heartburn can be reduced quickly by this method.

Did you know?

People often find it difficult to accept the idea that bacteria can be beneficial and improve health. Lactic acid bacteria are good, and when eaten, these bacteria improve health and increase longevity. These bacteria included in foods such as yogurt.

Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th Changes in boreal forest composition along a chronosequence in Quebec. Dates refer to the year of th
Male tule elk in Point Reyes Male tule elk in Point Reyes
Location of point of maximum effort Location of point of maximum effort
One-point linear perspective. One-point linear perspective.
Two-point linear perspective. Two-point linear perspective.
Torque is a twisting force equal to the distance from the pivot point times the force applied ... Torque is a twisting force equal to the distance from the pivot point times the force applied ...
Video: Structures that affect circulation - heart and MABP

For a complete list of videos, visit our video library