A country has a comparative advantage when the opportunity cost of producing a good in terms of:
a. the monetary value of other forgone goods is lower than that of other nations.
b. the monetary value of other forgone goods is greater than that of other nations.
c. forgone output of other goods is higher than that of other nations.
d. forgone output of other goods is lower than that of other nations.
e. forgone output of other goods is equal to that of other nations.
d
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Refer to Scenario 2 . What happens to the relative income distribution between the two countries under the conditions in the previous question? Explain
What will be an ideal response?
Profit can be maximized only where marginal revenue equals
a. average cost. b. total cost. c. marginal cost. d. average cost.
The total fixed cost function
A. is U-shaped. B. is a downward sloping line. C. is an upward sloping line. D. is horizontal.
Explain why the demand for domestic goods curve (ZZ) has a different shape than the domestic demand curve (DD)
What will be an ideal response?