Use the Following to Answer Question

question 37

Multiple Choice

Use the following to answer question:

-(Figure: Bicycles and Radishes I) Use Figure: Bicycles and Radishes I.The figure shows production possibility frontiers for two countries that produce only radishes and bicycles.The axes of the two graphs are measured in equivalent units.Country A is operating at point M,and country B is operating at point N.Suppose country A discovers a new technology that greatly increases its ability to produce bicycles but has no effect on its ability to produce radishes.This would:

• A)lower the opportunity cost of producing radishes in country A.
• B)increase the opportunity cost of producing radishes in country A.
• C)not affect the opportunity cost of producing radishes in country A.
• D)increase the opportunity cost of producing radishes in country B.

Understand the U-shape of the short-run average total cost curve and its causes.

Identify implications of changes in fixed and variable costs on overall production costs.

Comprehend the concept of marginal product and its relationship with total output.

Understand the implications of marginal cost changes on average total cost patterns.

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Definitions:

Conclusion

The end or finish of an event, process, or text.

Categorical Syllogism

An argument based on deduction that consists of two premises and three distinct terms, with each term appearing exactly two times across the three propositions.

First Premise

The initial statement or proposition from which further reasoning is based in an argument.

Valid Deductive Argument

A logical statement where, if the premises are true, the conclusion necessarily follows and must also be true.