Explain why you would expect supply curves to slope upward on the basis of the Principle of Increasing Opportunity Cost. 2. The perfectly competitive firm should always produce the output level for which price equals marginal cost.
a) true
b) false
3. Economists often stress that congestion helps account for the law of diminishing returns. With this in mind, explain why it would be impossible to feed all the people on Earth with food grown in a single flowerpot, even if unlimited water, labor, seed, fertilizer, sunlight and other inputs were available.