Trade allows the people of a country to produce outside their production possibility curve.
Answer the following statement true (T) or false (F)
False
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To compete in the automobile market, Tesla must make many strategic decisions such as whether to introduce a new car model, how to sell and service its cars, and where to advertise
At Tesla's Fremont, California plant, managers must decide on the monthly production quantities of their S and X models. In making this decision, the managers A) will choose to only produce the quantity of S and X models where marginal cost equals zero. B) will always decide on production quantities in which revenues are maximized. C) face no trade-off because the Fremont plant only produces these two models of the many Tesla models produced worldwide. D) face a trade-off, because producing more of one model means producing less of the other.
If a firm has a monopoly in both the production and distribution of a product and the managers of both the production and distribution divisions maximize profits, all of the following are true except which one?
A) A successive monopoly will occur within the firm. B) The firm will maximize its total profit. C) The manager of one of the divisions should be instructed to maximize profit and the manager of the other division should be instructed to operate as a perfectly competitive firm. D) Double marginalization will occur within the firm.
If the probability a firm is being embezzled is 2 percent and the estimated potential cost to the firm from embezzlement is $100,000, what is the expected cost of the embezzlement?
A) -$2,000 B) $200 C) -$200 D) $2,000
The absolute price elasticity of demand for a product for which annual expenditures make up a very small share of a typical consumer's budget is probably
A) less than 1. B) equal to 1. C) greater than 1. D) infinity.