Refer to the table below. Based on their comparative advantage, Martha should specialize in ________ while Julia should specialize in ________. Time to Make a PieTime to Make a CakeMartha60 minutes80 minutesJulia50 minutes60 minutes
A. cakes; pies
B. neither pies nor cakes; both pies and cakes
C. pies; cakes
D. both pies and cakes; neither pies nor cakes
Answer: C
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When transportation costs fall, consumer prices have a tendency to rise
Indicate whether the statement is true or false
For a firm producing in a perfectly competitive product market, the marginal revenue product of labor eventually
a. falls due to diminishing marginal returns to labor b. rises due to diminishing marginal returns to labor c. falls due to a falling product price d. falls due to a rising product price e. rises due to falling marginal productivity of labor
Refer to the data. The profit-maximizing output for this firm:
A. is 3.
B. is 4.
C. is 5.
D. cannot be determined from the information given.
The production decision is a short-run decision.
Answer the following statement true (T) or false (F)