If people stand to produce at lower cost when specializing and producing in larger quantities
a. they cannot gain from trade because each one is just as potentially productive as another.
b. they cannot gain from trade because most people's wants can be easily satisfied with what they can produce themselves.
c. they cannot gain from trade if they have similar tastes.
d. they can gain from trade by specializing and increasing productivity.
d. they can gain from trade by specializing and increasing productivity.
You might also like to view...
A firm using a two-part tariff can produce the economically efficient outcome by
A) making the fixed-fee portion of the price as low as possible. B) setting the fixed-fee portion of the price at some proportion to the fixed cost of production. C) setting the per-unit portion of the price equal to the average cost of production. D) setting the per-unit portion of the price equal to the marginal cost of production.
Refer to the graph shown. The economy is in both a short-run and a long-run equilibrium at:
A. point A. B. point B. C. point C. D. no point in the graph.
If the marginal cost of producing the next unit of output exceeds the average total cost, then:
A. the average total cost curve is increasing. B. the marginal cost curve is at its minimum. C. the average total cost curve is decreasing. D. the average total cost curve is at its minimum.
An increase in the quantity of hybrid cars supplied would be caused by which of the following?
A. An increase in the demand for hybrid cars B. A decrease in the demand for hybrid cars C. Higher prices of car batteries D. Lower prices for gasoline