he idea of increasing opportunity cost is reflected in the A. bowed in shape of the production possibilities frontier. B. positi
ve slope of the production possibilities frontier. C. linear shape of the production possibilities frontier. D. fact that the PPF shows there are unattainable production points. E. bowed out shape of the production possibilities frontier.
1 answer:
Answer:
E) bowed out shape of the production possibilities frontier.
Explanation:
The production possibilities frontier curve is usually has a bowed out shape because as the production of one of the products increases, the opportunity cost of producing the other product also increases.
As shown in the attached image, as the production of Y increases, the opportunity cost of producing X will also increase, giving the curve a bowed shape. The same happens to the opportunity cost of producing Y when the production of X increases.
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4,000,000 units should be sold a company
<u>Explanation:</u>
<u>Calculating the sales in units:</u>
It has been given that the toal market demand is $20 million, average quantity purchased by buyer per year is 2 units, price average is $50, and the desired share of the market is 10%.
Where:
Q = Total market demand,
N = number of buyers in the market, q = average quantity purchased by the buyer per year,
P = price of average unit
= $2,000,000,000
Market share =
= 4,000,000 units
Hence, the company should sell 4 million units to achieve 10 percent market share.