Robert produces sunglasses. He can sell them for $15 per pair. At the level of output where MR = MC, his AVC = $15.45 and his AFC = $.40 . Explain whether or not Robert should shut down
Robert should shut down because he cannot cover his variable costs. He is losing $.85 per pair of glasses at
the profit-maximizing/loss-minimizing output level, but he would lose less money if he padlocked his
factory and produced no sunglasses.
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The government just signed an agreement with a collection of automobile manufacturers specifying which production techniques are allowed and which are banned due to environmental concerns. This action answered the basic economic question of ______.
a. What is the best method of production? b. How will the goods and services be produced? c. Who will get the goods and services? d. What goods and services will be produced?
An import quota will ordinarily raise the price of the good in the importing country.
Answer the following statement true (T) or false (F)
Maximum Feasible Hourly Production Rates of EitherComputers or Bicycles Using All Available ResourcesProductUnited StatesChinaComputers83Bicycles26 Refer to the above table. Assuming that opportunity costs are constant, which of the following is a correct statement?
A. China has a comparative advantage in both goods. B. China has a comparative advantage in computers. C. The United States has a comparative advantage in bicycles. D. The United States has a comparative advantage in computers.
Over the last 30 years, the income gap between the rich and the poor has declined
a. True b. False Indicate whether the statement is true or false