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How do the production function model and the supply and demand model differ? (1 point) () The production function shows market relationships over time; supply and demand illustrate the relationship between inputs and outputs. The production function shows a market in the short run; supply and demand illustrate a market in the long run. The production function shows the relationship between inputs and outputs; supply and demand illustrate market relationships over time. The production function shows the various efficiency points in both the short and long run; supply and demand illustrate the flow of outputs between economic actors. The production function shows the flow of outputs between economic actors; supply and demand illustrate the various efficiency points in both the short and long run. 49. (01.02 LC) Resource allocation is determined by which of the following? (1 point) O) What is essential knowledge to pass on to the next generation? What goods and services should be produced? Which economy enjoys a lower opportunity cost for this good? When does marginal cost equal marginal benefit? What are the most advantageous terms of trade? 50. (01.03 MC) A production possibility curve would if the availability of an input decreased and would _ if a technology improvement increased production efficiency. (1 point) shift inward; shift inward not move; not move shift outward; shift inward ) not move; shift outward O shift inward; shift outward 51. (03.05 MC) If a firm is producing at the profit-maximizing output level and is earning positive economic profit, which of the following must be true? (1 point) Average total cost = price; marginal cost total revenue; marginal cost > marginal revenue Average total cost marginal revenue