Author Question: As we increase the production of computers, we find that we must give up larger and larger amounts ... (Read 62 times)

imowrer · **on:** Jun 29, 2018

As we increase the production of computers, we find that we must give up larger and larger amounts of DVD players per computer.

A) This situation illustrates increasing opportunity cost.
B) As a result, we should specialize in the production of DVD players.
C) The production possibilities frontier for computers and DVD players is a straight line.
D) DVD players will be more highly regarded by consumers than computers.

Question 2

The above figure shows the demand curve for movie rentals from Redbox. If Redbox raised its price from 2.50 to 3.00, between these two prices the price elasticity of demand equals

A) 1.2.
B) 0.8.
C) 2.0.
D) 0.5.