--%>

Law of rising opportunity costs

Below described table is a production possibilities table for consumer goods (automobiles) and capital goods (forklifts):

1918_Production possibilities curve.png

If the economy is at point C, describe the cost of one more automobile? Of one more forklift? Describe how the production possibilities curve reflects the law of rising opportunity costs.

E

Expert

Verified

4.5 forklifts; .33 automobiles, as find out from the table.  Rising opportunity costs are reflected in the concave-from-the-origin shape of the curve.  This means the economy has to give up larger and larger amounts of rockets to obtain constant added amounts of automobiles—and vice versa.

   Related Questions in Finance Basics

  • Q : Decision rule using internal rate of

    Describe decision rule for accepting or rejecting proposed projects while using internal rate of return? Whenever the internal rate of return is greater than or equal to the required rate of return, the hurdle rate, the project is accepted. Whi

  • Q : What is Final Budget Final Budget :

    Final Budget: Usually refers to the Governor’s Budget as amended by actions taken on the Budget Bill (example, legislative changes, and Governor’s vetoes). Note

  • Q : Define Special Funds Special Funds :

    Special Funds: For legal base budgeting purposes, funds produced by statute, or administratively per Government Code Section 13306, employed to budget and account for taxes, licenses, and fees which are restricted by law for specific activities of the

  • Q : All rates are stated annually with

    1.      Assume the following (all rates are stated annually with semiannual compounding):

  • Q : State Section 1.80 Section 1.80 : The

    Section 1.80: The section of Budget Act which comprises the periods of accessibility for Budget Act appropriations.

  • Q : Why too little debt is as unwanted as

    If an optimal capital structure exists, describe reasons why too little debt is as unwanted as is too much debt? Too little debt may be as unwanted as too much debt since if a firm contains a very conservative capital structures it may be losing

  • Q : Reducing payroll costs It is likely

    It is likely that in the next few years, employers will face incresing pressures to reduce their payroll costs. critically evaluate the range of ways by which payroll costs can be reduced whilst taking into account the need to maintain a focus on the

  • Q : Companies benefit most from stronger

    What type of U.S. companies would benefit most from a stronger dollar in the foreign exchange market? Describe. U.S. companies which import goods from other countries would benefit from a stronger dollar. More units of foreign currency could b

  • Q : Effect of foreign imports Normal 0

    Normal 0 false false

  • Q : Pros and cons of commercial paper

    Describe pros and cons of commercial paper associated to bank loans for a company seeking short-term financing? Usually commercial paper is a cheaper source of short-term financing for a firm, compared to bank loans. Also, a larger amount of fu