If Brazil has a comparative advantage relative to Cuba in the production of sugar cane, then
A) the opportunity cost of production for sugar cane is lower in Brazil than in Cuba.
B) the implicit costs of production for sugar cane are lower in Brazil than in Cuba.
C) the explicit cost of production for sugar cane is lower in Brazil than in Cuba.
D) the average cost of production for sugar cane is lower in Brazil than in Cuba.
A
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A perfectly competitive firm's supply curve follows the upward-sloping segment of its marginal cost curve above the:
a. average total cost curve. b. average variable cost curve. c. average fixed curve. d. average price curve.
An increase in the marginal propensity to consume (MPC) leads to an increase in the spending multiplier
a. True b. False Indicate whether the statement is true or false
A country has a comparative advantage in a product if the world price is
a. lower than that country's domestic price without trade. b. higher than that country's domestic price without trade. c. equal to that country's domestic price without trade. d. not subject to manipulation by organizations that govern international trade.
In markets where the supply curve is vertical, changes in:
A. Demand will not cause the equilibrium price to change B. Supply will not cause the equilibrium price to change C. Demand will not cause the equilibrium quantity to change D. Supply will not cause the equilibrium quantity to change