Does the principle of increasing opportunity cost

Assignment Help Business Economics

Reference no: EM13887859

With full-employment and efficient utilization of all its resources Dismaland can produce 300 tanks. Alternatively, Dismaland could devote all its resources to automobiles and produce 650 per year - or it could produce any combination of tanks and automobiles lying on a straight line between these two extremes. Draw a PPF for Dismaland (with tanks on the horizontal axis).

What is the opportunity cost of producing an additional automobile in Dismaland? Give a numerical answer.

Does the principle of "increasing opportunity cost" hold in this country?

Reference no: EM13887859

Questions Cloud

Economic changes are consistent with cost-push inflation : Which of the following economic changes are consistent with cost-push inflation? Check all that apply. Which of the following are consequences of hyperinflation? Check all that apply.

Give an example of company that uses consumer arbitration : There is an ongoing debate over the use of arbitration clauses in consumer contracts. Differences between arbitration and litigation include the costs charged to the parties, the speed of resolution, Give an example of a company that uses consumer ar..

What influenced the speed of diffusion : What is the dominant technological design of the St. Jude Medical's industry (medical device manufacturing industry)? Examples: robotic technology, computer technology? Did this dominant technology develop quickly or more slowly and what influenced t..

What is the consumers marginal rate of substitution : A consumer has a budget of $200 to spend on bowling (b) and tutoring sessions (t). Assume that each game of bowling costs $16 and each tutoring session costs $20. The consumer derives utility from tutoring sessions and bowling according to the utilit..

Does the principle of increasing opportunity cost : With full-employment and efficient utilization of all its resources Dismaland can produce 300 tanks. Alternatively, Dismaland could devote all its resources to automobiles and produce 650 per year - or it could produce any combination of tanks and au..

Monopoly firm raise the price in order to increase revenues : Suppose an industry is monopolized, and the demand for the product sold by the firm is given by: Q = 200 ? 4P. At what price range should the monopoly firm raise the price in order to increase revenues?

Macroeconomic variable : Which of the following is not a macroeconomic variable?

Wages of most countries relative to the us : Economists say that wages of most countries relative to the US are, for the most part, similar to their productivity relative to the US. Do you think US apparel manufacturers would agree with this?

Differences between ricardian theory-specific factors model : Briefly discuss the differences between the Ricardian Theory, Specific Factors Model and Heckscher-Ohlin Theory of Trade.

User Account

All Pages