Suppose the Country of Popcorn Produces Only Jets and Corn

question 433

Multiple Choice

Suppose the country of Popcorn produces only jets and corn. If Popcorn cannot produce any more jets without giving up corn, we say that Popcorn has achieved

• A) the highest marginal benefit.
• B) production efficiency.
• C) the lowest marginal cost.
• D) the highest opportunity cost.

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Definitions:

Marginal Utility

The incremental pleasure or usefulness attained by consuming an extra unit of a good or service.

Total Utility

The overall satisfaction or pleasure a person derives from consuming a certain amount or quantity of goods or services.

Limited Income

Income that is not sufficient to meet the minimum standard of living or personal financial needs.

Total Product Curve

Illustrates the total output of a good or service produced by a firm as a function of the input used.