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Mekhanik [1.2K]
2 years ago
10

If the firm is at point D and decides to increase the production of bike tires by 300 units, the opportunity cost will be truck

tires. If the firm is at point B and decides to increase the production of truck tires by 400 units, the opportunity cost will be bike tires.
Business
1 answer:
earnstyle [38]2 years ago
4 0

In a situation where the firm is at point D and an increase the production of bike tires by 300 units, the opportunity cost will be <u>200 truck tires.</u>

When the firm is at point B and decides to increase the production of truck tires by 400 units, in this case, the opportunity cost will be<u> 500 bike tires.</u>

Opportunity cost simply means the potential benefit that an economic entity loses when it engages in another activity.

Learn more about opportunity cost on:

brainly.com/question/481029

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Answer:

The SRAS curve will shift to the right.

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This increase in production and investment will increase the aggregate supply. As a result, the short-run aggregate supply curve will move to the right. This will cause the equilibrium price to fall and the equilibrium quantity to increase.

7 0
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3 years ago
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1 year ago
Whats the difference between stock and stockholder?
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I hope you find this information useful and interesting! Good luck!

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