What is meant by constant opportunity costs

Reference no: EM132172659

Question: 1. How does the comparative-cost concept relate to a nation's production possibilities schedule? Illustrate how differently shaped production possibilities schedules give rise to different opportunity costs.

2. What is meant by constant opportunity costs and increasing opportunity costs? Under what conditions will a country experience constant or increasing costs?

3. Why is it that the production points have a bearing on comparative costs under increasing-cost conditions but not under conditions of constant costs?

Reference no: EM132172659

Questions Cloud

What are the exact advantages of the collaborative strategy : What are the exact advantages of the collaborative strategy in R&D? Why could NKT Flexibles not just undertake all R&D in-house?

What is meant by the theory of reciprocal demand : What is meant by the theory of reciprocal demand? How does it provide a meaningful explanation of the international terms of trade?

Interpret the results of Cobb-Douglas production function : FIN625 Econometrics Assignment, Qassim University, Saudi Arabia. Using economic and statistical criteria, interpret results of Cobb-Douglas production function

What is meant by the term trade triangle : What is meant by the term trade triangle? With a given level of world resources, international trade may bring about an increase in total world output. Explain.

What is meant by constant opportunity costs : What is meant by constant opportunity costs and increasing opportunity costs? Under what conditions will a country experience constant or increasing costs?

How a nation could have an absolute disadvantage : Develop an arithmetic example that illustrates how a nation could have an absolute disadvantage in the production of two goods and could still have.

How have the policies differed from the adopted by japan : Describe the industrial policies adopted by the U.S. government. How have these policies differed from those adopted by japan?

What are trade remedy laws : What are trade remedy laws? How do they attempt to protect U.S. firms from unfairly (fairly) traded goods? What is intellectual property?

What is meant by the most-favored-nation clause : What is meant by the most-favored-nation clause, and how does it relate to the tariff policies of the United States? GATT and its successor.

User Account

All Pages