Economics

posted by .

Pls advise..

The max units of good A is 180
The max units of good B is 60

In general terms, what happens to the opportunity cost of good A as the output of good A increases?

In general terms, what happens to the opportunity cost of good B as the output of good B increases?

  • Economics -

    In production, the law of diminishing returns tells us that the opportunity cost of producing another unit of something keeps increasing as more and more of that item is produced.

    The answer to both is that the opportunity costs increase.

    Check out this site for more insights.
    http://en.wikipedia.org/wiki/Production_theory_basics

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Economics

    An increase in the price of a good A.increases the opportunity cost of consuming the good. B. decreases the opportunity cost of conusming the good. C. does not effect the oppurtunity cost of consuming the good. D. increases the opportunity …
  2. economics

    I answered some questions. pls check if they are correct and pls help in questions e and f. Production Possibilities Possibility Maximum Units of Good A Maximum Units of Good B a 200 0 b 180 60 c 160 100 d 100 160 e 40 200 f 0 220 …
  3. precalculus

    a shipment of 10 microwaves contains 3 defective units. in how many ways can a vending company choose 4 units if: a)all units are good b)2 units are good c) at least 2 units are good
  4. math

    How do you do this question? A shipment of 25 television sets contains three defective units. In how many ways can a vending company purchase four of these units and receive (a) all good units, (b) two good units, and (c) at least
  5. Economics

    Below is the production possibility information of small nations Arboc and Arbez, which can produce two goods, wheat, and coffee. The maximum quantity of each good is shown in the table below. Assume the two nations trade in a world …
  6. Micro economics

    Below is the production possibility information of small nations Arboc and Arbez, which can produce two goods, wheat, and coffee. The maximum quantity of each good is shown in the table below. Assume the two nations trade in a world …
  7. Economics

    Below is the production possibility information of small nations Arboc and Arbez, which can produce two goods, wheat, and coffee. The maximum quantity of each good is shown in the table below. Assume the two nations trade in a world …
  8. Economics

    Country A is producing 4 units of X and 8 units of Y and country B is producing 4 units of X and 6 units of Y. The opportunity cost of producing more of A) good X is the same for both countries. B) good Y is the same for both countries. …
  9. Economics

    17. The current price for a good is $20, and 100 units are demanded at that price. The price elasticity of demand for the good is -1. When the price of the good drops by 10% to $18, consumer surplus: Increases or decreases by $__?
  10. Economics

    At the present price of $20 per unit, the firm is selling 2000 units of a good. It believes that the price elasticity of demand for the good is - 1.0. If the price is lowered to $18, then the buyers would be expected to buy a) 1800 …

More Similar Questions