If an Edgeworth Production Box for Two Industries,with Land and Labor

question 93

Multiple Choice

If an Edgeworth production box for two industries,with land and labor as the inputs,has a contract curve that is same as the diagonal of the box,we can infer that:

• A)land is being substituted for labor in production of both the commodities.
• B)the production possibility frontier is a 45-degree line from the origin.
• C)both industries are increasing cost industries.
• D)the proportion of land to labor used in producing the two goods is the same.

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Definitions:

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The degree to which an organization's strategies align with its external environment and internal resources and capabilities.

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The intensity and number of competitors within a market, affecting strategies and market positioning.

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