Microeconomics
Which of the following scenarios best illustrates productive efficiency?
How does the shape of a PPF graph change as resources become more specialized?
If moving from 3 to 4 units of good A results in a decrease from 8 to 4 units of good B, what is the marginal opportunity cost of the fourth unit of good A?
If the economy is producing at a point where the marginal cost of good Z is less than the marginal benefit, what should be done to achieve allocative efficiency?
Why can't marginal benefit be derived from a PPF graph?
What information is not provided by a PPF graph?
Allocative efficiency is achieved when:
If the marginal cost of producing an additional unit of good Y is 4 and the marginal benefit is 2, what should the economy do to achieve allocative efficiency?
Why does the PPF graph bow outward as more of one good is produced?
What does the outward bow shape of a PPF graph indicate?
