--%>

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 : Effects of that depreciation or

    Would a decline in U.S. consumer income or a weakening of U.S. preferences for foreign products cause the dollar to depreciate or appreciate?  Other things equal, what would be the effects of that depreciation or appreciation on U.S. exports and imports?

  • Q : Regression Your firm is worried about

    Your firm is worried about being sued for gender discrimination. There is a growing perception that males are being paid more than females in your department. Using the data in the SALARY tab in the Excel file provided, please complete the following using a = .05 a). Do the men appear to earn mo

  • Q : Illustrate the term Positive and

    Illustrate the term Positive and Normative Economics?

  • Q : Calculate the short-run profit or loss

    A perfectly competitive firm produces 3,000 units of a good at a total cost of $36,000. The cost of each good is $10. Calculate the firm's short-run profit or loss. w) loss of $6,000. x) profit of $6,000. y profit of $30,000. z) There is insufficient

  • Q : Cchange in demand and a change in the

    Distinguish between a change in demand and a change in the quantity demanded?

  • Q : When are transaction costs to ultimate

    Transaction costs to ultimate consumers are reduced if: (w) consumers travel long distances to buy directly from manufacturers quite than buying the goods at local retail stores. (x) intermediaries generate income while conveying goods from manufactur

  • Q : Good economic policy requires good

    Explain the statement: “Good economic policy requires good economic theory.”?

  • Q : Other things equal assumption helps

    Explain the statement: “The other things equal assumption helps isolate key economic relationships.”?

  • Q : Illustrate the Goals of Mixed Economy

    Illustrate the Goals of Mixed Economy?

  • Q : Examples and Applications of

    What are the Examples and Applications of International Trade?