--%>
Assignment Help - homework help

Illustrate the Optimal or best product-mix

Illustrate the Optimal or best product-mix and also Law of increasing opportunity costs?

E

Expert

Verified

Optimal or best product-mix:

1. It will be some point on the curve.

2. The exact point depends on society; this is a normative decision.

Law of increasing opportunity costs:

1. The amount of other products that must be foregone to obtain more of any given product is called the opportunity cost.

2. Opportunity costs are measured in real terms rather than money (market prices are not part of the production possibilities model.)

3. The more of a product produced the greater is its (marginal) opportunity cost.

4. For increasing opportunity cost the slope of the production possibilities curve becomes demonstrating as well as steeper.  This constructs the curve as it emerges concave from the origin and bowed out.

   Related Questions in Business Economics

  • Q : Illustrate the Comparative advantage

    Illustrate the Comparative advantage and terms of trade?

    		•
  • Q : Major type of expenditure at the state

    What is the most important source of revenue and the major type of expenditure at the state level?  

    		•
  • Q : Way to determine nature price of Adam

    “Natural price” by Adam Smith of a good was eventually determined through: (1) the amount of capital used within production in the short run. (2) long-run average costs of production, that Adam Smith believed to be the amo

    		•
  • Q : Example of public goods Drinking at a

    Drinking at a public water fountain is: (w) a public good because anyone may drink from it. (x) results in a negative externality because others can’t drink from this at similar time. (y) a positive externality because you are benefiting by other’s provisi

    		•
  • Q : Depreciation of the euro change the

    If the European euro declines in value (depreciates) in the foreign exchange market, would it be easier or harder for the French to sell their wine in the United States?  Suppose you were planning a trip to Paris.  How would the depreciation of the euro chan

    		•
  • Q : Introduction of the term Cost of

    Give a brief introduction of the term Cost of preference shares?

    		•
  • Q : Characteristic of an oligopolistic

    Which of the given is a quality of an oligopolistic market structure? w) There are only some dominant sellers. x) every firm sells a unique product. y) this is easy for new firms to enter the industry. z) Each firm require not react to the actions of

    		•
  • Q : Increase in spending for space research

    Use the circular flow model to confirm this assertion for $50 million increase in spending for space research?

    		•
  • Q : Explain how Entrepreneurs are

    Explain how Entrepreneurs are risk-takers?

    		•
  • Q : Describe the Euro Describe the Euro?

    Describe the Euro?

    		•