-As Output Moves from Point a to Point B to Point

question 265

Multiple Choice

-As output moves from point a to point b to point c along the PPF in the above figure, the opportunity cost of one more unit of good X

• A) falls. The opportunity cost of one more unit of good Y also falls.
• B) rises. The opportunity cost of one more unit of good Y falls.
• C) rises. The opportunity cost of one more unit of good Y also rises.
• D) falls. The opportunity cost of one more unit of good Y rises.

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Definitions:

Antitrust Policy

Regulations and laws designed to promote competition and prevent monopolies and unfair practices in the marketplace.

Oligopolists

Firms that are part of an oligopoly, a market structure characterized by a small number of firms that have significant control over market prices and competition.

Homogeneous Product

A product that is viewed as identical no matter who produces it, making it impossible for consumers to distinguish between products based on brand or quality.

Peach Suppliers

Businesses or individuals that provide peaches to the market, contributing to the supply of this specific type of fruit.