The Figure Given Below Represents an Economy Producing Corn and Planes

question 54

Multiple Choice

The figure given below represents an economy producing corn and planes under different economic situations.Figure 2.2

-Consider a PPC with automobiles on the vertical axis and cotton on the horizontal axis. The discovery of a new fertilizer that improves crop yield will shift:

• A)the vertical intercept up but will not shift the horizontal intercept.
• B)the horizontal intercept to the right but will not shift the vertical intercept.
• C)the horizontal intercept to the left and the vertical intercept upward.
• D)the vertical intercept downward and the horizontal intercept to the right.
• E)neither the horizontal intercept nor the vertical intercept.

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Definitions:

Formal Agreement

A legally binding contract or arrangement between two or more parties, often documented and enforceable by law.

Duopolists

Firms or entities within an oligopoly that specifically consist of only two producers or sellers in the market.

Collusion

A secret agreement or cooperation between parties, often competitors, to deceive or defraud others, typically in the context of fixing prices or manipulating market outcomes.

Cartel

An association of independent companies or organizations that agree to limit competition between themselves, often to control prices and production.