The slope of the production possibility frontier shows
a. the marginal rate of substitution between the two goods.
b. the relative marginal costs of the two goods.
c. the efficient combination of outputs possible using fixed amounts of input.
d. the relative marginal productivities of the two goods.
Question 2
Suppose two goods (X and Y ) are being produced efficiently and that the production of X is always more labor intensive than the production of Y. Production depends only on two factors (capital and labor); these may be smoothly substituted for each other. The total quantities of these inputs are fixed. An increase in the production of X and a decrease in the production of Y will
a. increase the capital-labor ratio in each firm.
b. decrease the capital-labor ratio in each firm.
c. leave the capital-labor ratio for each firm unchanged.
d. increase the capital-labor ratio in Y production and decrease the capital-labor ratio in X production.
From space earth shows itself as a planet covered mostly by water.
John Lewis Krimmel’s painting of the Fourth of July in Centre Square Philadelphia (1812) shows the d
This lithograph of the New York draft riots, 1863, shows that although the rioters mainly targeted b
Sign on methanol pump shows that methyl alcohol is a poison and can cause skin irritation and other ...
Marginal Supply - Demand Curve
How to calculate invest at each rate