Suppose argentina produces only cars and trucks. the resources that are used in the production of these two goods are not specialized—that is, the same set of resources is equally useful in producing both trucks and cars.

the shape of argentina's production possibilities frontier (ppf) should reflect the fact that as argentina produces more trucks and fewer cars, the opportunity cost of producing each additional (increase, decrease, remain constant )

the following graphs show two possible ppfs for argentina's economy: a straight-line ppf ( ) and a bowed-out ppf ( ).
based on the previous description, the trade-off argentina faces between producing trucks and cars is best represented by graph 1, or graph 2 )

What would be the input, conversion and output of developing a new soft drink

Shelby company produces three products: product x, product y, and product z. data concerning the three products follow (per unit): product x product y product z selling price $ 85 $ 65 $ 75 variable expenses: direct materials 25.50 19.50 5.25 labor and overhead 25.50 29.25 47.25 total variable expenses 51.00 48.75 52.50 contribution margin $ 34.00 $ 16.25 $ 22.50 contribution margin ratio 40 % 25 % 30 % demand for the company’s products is very strong, with far more orders each month than the company can produce with the available raw materials. the same material is used in each product. the material costs $8 per pound, with a maximum of 4,400 pounds available each month. required: a. compute contribution margin per pound of materials used. (round your intermediate calculations and final answers to 2 decimal places.) contribution margin per pound product x $ product y $ product z $ b. which orders would you advise the company to accept first, those for product x, for product y, or for product z? which orders second? third? product x product y product z

Plastic and steel are substitutes in the production of body panels for certain automobiles. if the price of plastic increases, with other things remaining the same, we would expect: a) the demand curve for plastic to shift to the left. b) the price of steel to fall. c) the demand curve for steel to shift to the left d) nothing to happen to steel because it is only a substitute for plastic. e) the demand curve for steel to shift to the right