-The Figure Above Illustrates That If This Country Wishes to Have

question 19

Multiple Choice

-The figure above illustrates that if this country wishes to have F₂ - F₁ additional food by moving from point A to point B, it will

• A) have to find additional workers, because the country already is operating on its production possibilities frontier.
• B) be unable to do so until additional technological progress is made.
• C) have to sacrifice C₁ - C₂ clothing in order to free the resources necessary to produce the additional food.
• D) require that all the unemployed resources in the country be put to work.

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Definitions:

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, reflecting the true financial gain of a business.

Price Discrimination

A pricing strategy where a seller charges different prices for the same product or service to different customers, not based on differences in costs.

Marginal Cost

The additional expense incurred from producing another unit of a product.

Marginal Revenue

The additional revenue that a company generates from selling one more unit of a good or service.