--%>

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 : Pitfalls when two companies merge Other

    Other than pricing, some pitfalls that consumers might have to deal with when two major companies merge.

  • Q : Fin 235 Personal Finance Homework Fin

    Fin 235 Personal Finance Homework Chapter 8: Problems: 1, 3, 5, 7 1.   Most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If a family

  • Q : Define the term Baseline Adjustment or

    Define the term Baseline Adjustment or  Baseline Budget: Baseline Adjustment: Also termed to as Workload Budget Adjustment.

    Q : What is Prior Year Adjustment Prior

    Prior Year Adjustment: An adjustment for the difference among prior year accruals and real expenditures or revenues. The previous year adjustment amount is usually comprised in the Fund Condition Statements as an adjustment to realign the starting fun

  • 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

  • Q : Explain Budget Bill Budget Bill : The

    Budget Bill: The legislation symbolizing the Governor’s proposal for spending authorization for the subsequent fiscal year. The Budget Bill is all set by the Department of Finance and submitted to each house of the Legislature i

  • Q : Define Executive Order Executive Order

    Executive Order (EO): It is a budget document, issued by the Department of Finance, asking for the State Controller’s Office to make an adjustment in their accounts. The adjustments are usually authorized by the Budget Act provision language, Bu

  • Q : Major effects of this price floor

    Normal 0 false false

  • Q : Retiring an internally held debt and

    Normal 0 false false

  • Q : Problem of time lags in enacting and

    Normal 0 false false