For a Product with a Rapidly Increasing Opportunity Cost of Producing

question 303

Multiple Choice

For a product with a rapidly increasing opportunity cost of producing additional units,

• A) demand is price elastic.
• B) supply is price elastic.
• C) demand is price inelastic.
• D) supply is price inelastic.
• E) the demand curve is vertical.

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Definitions:

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Z Score

A statistical gauge that measures how a value compares to the average of a set of values by counting the number of standard deviations it falls from the mean.

Standard Score

A score that expresses the number of standard deviations a datum is from the mean of the distribution.

Normal Curve

A symmetrical, bell-shaped curve that describes the distribution of many types of data where most values cluster around the mean.