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1. (01.01 MC) Why might salt be a resource with a high cost in one market and a very low cost in another market? (1
1.
(01.01 MC) Why might salt be a resource with a high cost in one market and a very low cost in another market? (1 point)
Trade could affect costs. | |
Its supply could be scarce in one market and very great in another. | |
The higher cost market might have a much lower demand for salt than its supply. | |
The higher cost market might have no demand for salt. | |
The lower cost market might have more trade-offs for salt harvesting. |
2.
(01.02 LC) Resource allocation is determined by which of the following? (1 point)
What are the most advantageous terms of trade? | |
When does marginal cost equal marginal benefit? | |
Which economy enjoys a lower opportunity cost for this good? | |
What is essential knowledge to pass on to the next generation? | |
What goods and services should be produced? |
3.
(01.03 LC) (1 point)
C B A C Product 1 O E D Product 2Demand for Product Z 12 10 4. 10 8 8.8 Price (Dollars) 6 16,6 24,4 2 30. 2 0 10 15 20 25 30 35 Quantity (Pounds)Price Supply A P1 B E P2 T - F - F C H H P3 D J I G L - - Demand Quantity 01 02 03Price Supply A P1 B = E P2 C F P3 D Demand Q1 Q2 Q3 Quantity (units)Price MC ATC ATC, Quantity10 9 8 Long Run Average Total Costs 6 A D Cost 4 B C 1 2 3 4 5 6 7 Output 8 9 10\fPrice MC H AC M N AR G MR Quantity Q1 Q 2 (units)30- 25 20 15 10 5 0 5 1 2 3 4 5 6 7 8 9 10 Labor 10\fPrice ($) MSC MPC PC PE PP MSB QuantityStep by Step Solution
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