Figure 3-23 the Graph Below Represents the Various Combinations of Ham and Ham

question 133

Multiple Choice

Figure 3-23
The graph below represents the various combinations of ham and cheese (in pounds) that the nation of Bonovia could produce in a given month.
-Refer to Figure 3-23.Whenever Bonovia increases its production of ham by 1 pound per month,then it must decrease its production of cheese by

• A)0.75 pound.
• B)0.80 pound.
• C)1.00 pounds.
• D)1.25 pounds.

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Definitions:

TR

Total Revenue, which is the total income generated by a business from its sales of goods or services.

Long Run

A time period in economic theory during which all factors of production and costs are variable, allowing for full adjustment to changes.

MR

Marginal Revenue refers to the increase in revenue that results from the sale of one additional unit of output.

Industry Entry

The process by which new competitors enter an existing market or industry.