Figure 2-4 Figure 2-4 Shows Various Points on Three Different Production Possibilities

question 256

Multiple Choice

Figure 2-4

Figure 2-4 shows various points on three different production possibilities frontiers for a nation.
-Refer to Figure 2-4.A movement from X to Y

• A)could be due to a change in consumers' tastes and preferences.
• B)could occur because of an influx of immigrant labor.
• C)is the result of advancements in food production technology only, with no change in the technology for plastic production.
• D)is the result of advancements in plastic production technology only, with no change in food production technology.

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Definitions:

Marginal Cost

The cost related to creating an additional unit of a product or service.

Above Marginal

This is not a standard economic term and lacks a universally recognized definition. NO

Competitive Firms

Businesses that operate in markets with many sellers, where each seller has no control over the market price and must accept the market price for its products or services.

Positive Profits

A situation where a business or individual earns more money than expended, indicating financial success and sustainability.