On a normal production possibilities frontier, what is most likely to happen to costs as an economy moves along the curve?

a

Costs for the good with increased production are rising.

b

Costs for the good with increased production are falling.

c

Costs for the good with increased production are not changing.

d

Costs for the good with increased production are either decreasing or not changing.

Q2. Amanda purchased a non-refundable ticket to see a magic show. She spent $70 on the ticket, but was willing to spend as much as $100. Because of the recent popularity of the show, scalpers are willing to pay $120 for the ticket. Since she is planning on going to the show, Amanda is no longer able to go to a party with friends. What is the true cost of her going to the show?

a. $100

b. $70

c. $120

d. $100 and the enjoyment of the party with friends.

f. $120 and the enjoyment of the party with friends.

g. The enjoyment of the party with friends.