Moving Between Two Points on a PPF,a Country Gains 8

question 229

Multiple Choice

Moving between two points on a PPF,a country gains 8 desktop computers and forgoes 4 laptop computers.The opportunity cost of 1 desktop computer is

• A) 4 laptops.
• B) 8 desktops.
• C) 1 desktop.
• D) 2 laptops.
• E) 1/2 of a laptop.

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Definitions:

Long-run Market Supply

Describes the total quantity of a good or service that producers are willing and able to supply at various prices in the long term, considering all factors of production are variable.

Resource Prices

The costs associated with acquiring the inputs needed for production, including raw materials, labor, and capital.

Industry Expands

The process of growth within a particular sector due to factors like increased demand, technological advancements, or entry of new businesses.

Competitive Price-taker Market

A market structure where sellers accept the market price as given, having no control over it due to perfect competition.