Figure 3-1 Graph (a) Graph (b) Two production possibilities frontier curves of Couches versus Chairs. A production possibilities frontier curve of Couches versus Chairs starts on the Couches axis at the maximum feasible value for couches, and descends in a concave downward arc to the maximum feasible value for chairs on the Chairs axis. A production possibilities frontier curve of Couches versus Chairs is a straight line that connects the maximum feasible value for couches on the Couches axis to the maximum feasible value for chairs on the Chairs axis. Refer to Figure 3-1. The rate of trade-off between producing chairs and producing couches is constant in a. both Graph (a) and graph (b). b. neither Graph (a) nor Graph (b). c. Graph (a) only. d. Graph (b) only.

"in the electricity industry, low average total costs are obtained only through large-scale production. in other words, the initial cost of setting up all the necessary wiring makes it risky and, most likely, unprofitable for competitors to enter the market. throughout much of the 20th century, many people viewed south africa’s de beers group as a monopoly because it controlled a large percentage of diamond production and sales. patents are granted to inventors of a product or process for a certain number of years. the reason for this is to encourage innovation in the economy. without the existence of patents, it is argued, research and development for improved electronics is unlikely to take place, since there’s nothing preventing another firm from stealing the idea, copying the product, and producing it without incurring the devel opment costs."which of the following best explains the barriers to entry that exist in this scenario? increasing returns to scale legal barriers exclusive ownership of a necessary resource