consider the production possibilities frontier for an economy that produces only sofas and cars. as the economy moves from point a to point d, is the opportunity cost of cars increasing, constant, or decreasing? and it is equal to?

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08-09-2022
Business

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consider the production possibilities frontier for an economy that produces only sofas and cars. as the economy moves from point a to point d, is the opportunity cost of cars increasing, constant, or decreasing? and it is equal to?

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Tutorconsortium347 Tutorconsortium347 · Answer 1 · 2022-09-13T02:47:17+02:00

The number of cars that would have been sacrificed is equal to the opportunity cost of boosting couch manufacturing by one unit. In this scenario, 600 automobiles would be sacrificed by society in order to manufacture 900 couches, or (600 cars)/(900 sofas)=2/3 of a car each sofa.

What is the Economy?

An economy is a region where products and services are produced, distributed, traded, and consumed. It is generally understood to be a social domain that places an emphasis on the behaviors, discourses, and tangible manifestations connected to the creation, utilization, and management of finite resources. An economy is a collection of interconnected production and consumption processes that ultimately decide how resources are distributed within a community. The demands of persons who live there and conduct business there are met by the production and consumption of goods and services as a whole. Our daily lives are influenced by economic challenges. Concerns like tax and inflation, wealth and interest rates, inequality and developing markets, and energy and the environment are included in this.

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