Increasing Opportunity Cost While Moving Along a Production Possibilities Frontier

question 83

Multiple Choice

Increasing opportunity cost while moving along a production possibilities frontier is the result of

• A) taxes.
• B) firms' needs to produce profits.
• C) the fact that it is more difficult to use resources efficiently the more society produces.
• D) the fact that resources are not equally productive in alternative uses.

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Definitions:

Oligopolistic Industries

Markets or industries dominated by a few large firms, where each firm has some market power and their decisions affect each other.

Celler-Kefauver Act

A United States antitrust law passed in 1950 aimed at preventing anticompetitive mergers and acquisitions that might reduce competition.

Conglomerate Mergers

Mergers between firms that operate in unrelated business activities, aiming to diversify product offerings and risks.

Herfindahl-Hirschman Index

An economic indicator that measures the level of concentration and competition within an industry.