Top Posters
Since Sunday
n
3
j
3
x
2
c
2
2
p
2
n
2
3
2
C
2
z
2
k
2
d
2
Home Q & A Board Other Fields Homework Help Business Economics
New Topic  
primewire primewire
wrote...
Go to Answer
Posts: 130
Rep: 0 0
A year ago


Short description: A graph plots consumer goods against capital goods. Long description: The horizontal axis represents consumer goods. The vertical axis represents capital goods. The graph plots two curves and a line. Line, B is decreasing. It begins at a point on the vertical axis, where capital goods are high and consumer goods are zero. It ends at a point on the horizontal axis, where consumer goods are high and capital goods are zero. The curve, A is concave up and decreasing. It lies below line B. The curve, C is concave down and decreasing. It lies above line B. The start and end points of the curves and the line are the same.

FIGURE 1-5

Refer to Figure 1-5. Suppose the relevant production possibilities boundary is the one labelled B. This boundary implies that



▸ the opportunity cost of producing either capital goods or consumer goods does not depend on how much of each good is produced.

▸ consumer goods are preferred to capital goods.

▸ in this society, the resources are not efficiently employed.

▸ capital goods are preferred to consumer goods.

▸ the concept of opportunity cost is not at work in this economy.
Textbook 
Microeconomics

Microeconomics


Edition: 17th
Author:
Read 46 times
1 Reply
Replies
Answer verified by a subject expert
mrivas57mrivas57
wrote...
#1
Posts: 133
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

primewire Author
wrote...

A year ago
You make an excellent tutor!
noodlelicker
wrote...

Yesterday
This calls for a celebration Person Raising Both Hands in Celebration
DragonHeart
wrote...

2 hours ago
Brilliant ツ
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  956 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 311
  
 314
  
 175