In Equilibrium, with Diminishing Marginal Products, the

question 41

Multiple Choice

In equilibrium, with diminishing marginal products, the
Slope of the PPF is equal to:

• A)the ratio of prices for the products.
• B)the slope of the highest possible indifference curve.
• C)the ratio of the marginal products of labor.
• D)the ratio of prices for the products, the slope of the highest possible indifference curve, and the ratio of the
• Marginal products of labor.

Understand the concept and calculation of sales mix.

Comprehend strategies to impact estimates in Cost-Volume-Profit (CVP) analysis.

Identify the break-even point in both unit and dollar terms.

Recognize the importance and creation of cost behavior graphs.