Big Oaks Can Produce Either Paper Products or Lumber with Each

question 144

Multiple Choice

Big Oaks can produce either paper products or lumber with each tree that they harvest. Because Big Oaks can adjust the amo paper products and lumber they produce from the harvested trees, paper products and lumber are produced in variable prop The above table summarizes Big Oaks production possibilities from each harvested tree.
-Refer to the table above. Suppose the profit for each unit of paper product is $2.00 and the profit for each unit of lumber is $5 and Big Oaks is producing the profit- maximizing quantity of lumber and paper products. If the profit from each unit of paper product increases from $2 to $3 and the profit for each unit of lumber does not change, to maximize profit, Big Oaks should produce a______ proportion of paper products and produce ______units of paper products and lumber.

• A)greater; more
• B)smaller; less
• C)greater; less
• D)smaller; more

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Definitions:

Unemployment Rate

The share of workers in the labor force who are unemployed and actively working towards finding a job.

Henry Ford

An American industrialist and founder of Ford Motor Company, widely credited for revolutionizing the automobile industry with mass production techniques.

Spells of Unemployment

Periods during which an individual is actively searching for employment but is unable to find work.

Long-Term Unemployment

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