Assume for Namibia That the Opportunity Cost of Each Hut

question 138

Multiple Choice

Assume for Namibia that the opportunity cost of each hut is 200 bowls.Then which of these pairs of points could be on Namibia's production possibilities frontier?

• A) (200 huts,30,000 bowls)and (150 huts,35,000 bowls)
• B) (200 huts,40,000 bowls)and (150 huts,30,000 bowls)
• C) (300 huts,50,000 bowl)and (200 huts,60,000 bowls)
• D) (300 huts,60,000 bowls)and (200 huts,80,000 bowls)

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Definitions:

Profit-Maximizing

The process by which a firm adjusts its production and sale to achieve the highest possible profit.

Short-Run

A period during which at least one input in the production process is fixed, affecting the firm's ability to adjust to changes in demand.

Average Total Costs

dividing the total production costs by the quantity of produced units gives the cost for each unit.

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a business to fully adjust to changes in market conditions.