Which of the following is a reason why IBM decided to provide consulting services rather than manufacturing machines?
A) It had a comparative advantage in providing consulting services.
B) It had a comparative advantage in manufacturing machines.
C) Manufacturing of machines generated a positive.
D) Manufacturing of machines generated a negative.
A
You might also like to view...
Public debt is held as
A) Treasury Bills, Treasury Notes, Treasury Bonds, and U.S. Savings Bonds. B) U.S. Notes. C) Federal Reserve Notes. D) corporate bonds and common stocks of the largest companies.
The marginal revenue product represents
A) the marginal physical product of labor divided by the price of the good produced. B) the worker's contribution to the firm's total revenues. C) the worker's contribution to the firm's output. D) the value of each additional unit of output.
Avital and Joshua each have their own business selling lemonade in front of their houses. When they each charge 25 cents per glass, their total revenues are equal. However, when they each charge 40 cents per glass, Avital's revenues are bigger than Joshua's revenues. This is because:
a. Joshua faces a more inelastic demand curve. b. Avital faces a more elastic demand curve. c. Joshua faces a more elastic demand curve. d. Avital faces a less inelastic demand curve. e. there is a market failure.
Opportunity cost can always be measured in money terms
a. True b. False Indicate whether the statement is true or false