--%>

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 : Explain financial markets Explain

    Explain financial markets? Why do they exist?In financial markets, financial securities are bought and sold. They exist chiefly to bring deficit economic units (those needing money) and surplus economic units (those have extra money) together.

  • Q : FIN 335: Time Value of Money Problems

    FIN 335: Time Value of Money Problems  Computed on a Texas Instrument BA II Plus financial calculator  Before you start:  ? The calculator com

  • Q : Describe present value of the firms

    Describe the term "present value of the firm's operations" (also known as Enterprise Value). What does this number expose? The current value of the company's free cash flows reveals the market value of the firm's core income generating operatio

  • Q : Describe Section 28.50 Section 28.50 :

    Section 28.50: It is a Control Section of the Budget Act which authorizes the Department of Finance to increase or reduce the reimbursement line of an appropriation schedule for the reimbursements received from agencies of other state. It too contains

  • Q : Describe the risk-return relationship

    Describe the risk-return relationship.The relationship among risk and required rate of return is term as the risk–return relationship.  This is a positive relationship since the more risk assumed, the higher the required rate of retur

  • Q : Define Warrant Warrant : It is an order

    Warrant: It is an order drawn by the State Controller directing the State Treasurer to reimburse a particular amount, from a specific fund, to the entity or person named. A warrant usually corresponds to a blank check however is not essentially payabl

  • Q : Effect of merger activity in the

    How has the merger activity in the past decade influenced the concentration of assets in the banking industry? Over the last decade, the number of commercial banks declined through twenty-one percent and the averag

  • Q : Causes and solution to international

    causes and solutions to international bank crisis

  • Q : What are Summary Schedules Summary

    Summary Schedules: Different schedules in the Governor’s Budget Summary that summarize state revenues, expenditures and other fiscal and personnel data for the past, present, and budget years.

  • Q : Disadvantages of the Finger print

    Disadvantages of the Finger print technique: Health concerns while touching the sensor which is being touched by many number of individuals. Sometimes due to age and occupation may cause some diff