When a producer has a comparative advantage in producing a good, it means the producer:
A. can produce more of that good than others with the same number of workers.
B. has the ability to produce the good at a lower opportunity cost than others.
C. has no reason to trade with others.
D. is efficient in production.
B. has the ability to produce the good at a lower opportunity cost than others.
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For the perfectly competitive firm, price
A) equals average revenue and marginal revenue. B) equals average total cost. C) changes as output changes. D) depends on the fixed cost for the firm.
Under the merger guidelines written by the DOJ and FTC, a merger may not be challenged if:
A. there is an emergence of new technology. B. there is significant foreign competition. C. the firms involved have monetary problems. D. All of the statements associated with this question are correct.
Identify how ideas from monetarism and rational expectations have been incorporated into mainstream thinking about macroeconomics.
What will be an ideal response?
In the short run, marginal cost is positive and decreasing at output levels where total variable cost is ________ at a(n) ________ rate.
A. increasing; decreasing B. decreasing; decreasing C. decreasing; increasing D. increasing; increasing