Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. If Jerry decides to specialize in building fences, what are the limits to his terms of trade?
A. Jerry will accept no less than 7 dishes for each fence.
B. Jerry will accept no less than 2 dishes for each fence.
C. Jerry will accept no less than 7 fences for each dishes.
D. Jerry will accept no less than 2 fences for each dishes.
B. Jerry will accept no less than 2 dishes for each fence.
You might also like to view...
The government budget deficit, ________, is ________ when saving exceeds domestic investment
A) (T - G), created B) (T - G), partially financed C) (G - T), created D) (G - T), partially financed
Which of the following is not a technical barrier to entry in a monopolized market?
a. A patent b. Decreasing average cost c. A low cost method of production known only by monopolists d. Increasing returns to scale
These are the cost and revenue curves associated with a monopolistically competitive firm.
According to the graph shown, the monopolistically competitive firm will charge a price:
A. P3 in the long run, and earn zero profits. B. P2 in the short run, and earn positive profits. C. P2 in the long run, and earn zero profits. D. P3 in the short run, and earn positive profits.
Recently, the price of gasoline dropped to just under $3.50/gallon. Economic analysts currently are focusing on questions concerning the likely impacts of this price decrease on the demand for gasoline. The branch of economics that deals with these
questions is A) Normative economics. B) Macroeconomics. C) Positive economics. D) Microeconomics.