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Why does a nation experience increasing opportunity cost?
a. As the nation moves from a production point within the PPF to one on the PPF, opportunity costs increase.
b. Because the nation cannot produce at the unattainable production points that lie beyond the PPF.
c. Resources are not equally productive in producing different kinds of goods and services.
d. When the amount of resources increases, the opportunity cost of all goods and services increases.
If the company will sell the number of units obtained in part d and wants to maintain the same profit as last year, what will its new price have to be.
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The elasticity of demand:
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