Refer to the above table. If opportunity costs are constant, then the United States and Mexico will produce goods in which they have a comparative advantage and trade at a rate of exchange of
A) 4 computers for 1 bicycle.
B) 6 computers for 1 bicycle.
C) 0.1 computer for 1 bicycle.
D) 1 computer for 1 bicycle.
A
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In the principal-agent relationship, the principal is
A) the person who is placed in control over resources that are not his own and agrees to compensate the resource owner in the event of outcomes that do not satisfy the resource owner. B) the person who places his resources in professional hands in exchange for the professional's promise to act on the resource owner's behalf. C) the owner of a resource that has hired a third party to act in the best interest of that third party. D) the person who is placed in control over resources that are not his own, with a contractual obligation to use these resources in the interests of some other party.
Suppose you purchase a call option with a strike price of $85 for an options price of $10 How much profit will you earn if you exercise it when the price is $100?
What will be an ideal response?
If labor is a firm's only variable input, marginal cost ultimately depends on
a. fixed cost b. how much profit is made c. the price of the good produced d. how much output each worker produces e. fixed cost per unit
What do economists call the per-unit cost of operation?
a. average total cost b. average fixed cost c. average variable cost d. average sunk cost