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1. The law of increasing opportunity costs says that: a.) costs of production in

ID: 1181471 • Letter: 1

Question

1. The law of increasing opportunity costs says that:

a.) costs of production increases and then decreases

b.) increases in wages cause increases in the costs of production

c.) along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good.

d.) along a production possibilites curve, increases in the production of one good make the production of that good easier and easier



2. The production technique that is most efficient is the one that produces a given amount of output:

a.) using the least amount of labor and capital resources

b.) at the highest price

c.) at the lowest total cost

d.) yielding the maximum total revenues

Explanation / Answer

1)


c) along a production possibilities curve, increases in the production of one good require larger and larger sacrifices of the other good.


2)

a.) using the least amount of labor and capital resources