Is it possible for a firm to have an absolute advantage in producing something without having a comparative advantage? Why or why not?
What will be an ideal response?
Yes, a firm can have an absolute advantage without having a comparative advantage. A firm may be able to produce more of a good or service than its competitors, but that does not necessarily mean it can produce the good or service at a lower opportunity cost than its competitors.
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Economic efficiency definitely occurs whenever
A) a firm cannot increase its output without increasing all its inputs. B) there are no implicit costs. C) the most modern technology is used in the production process. D) the firm produces a given output at the least cost.
"Personalized pricing" and "group pricing" are examples of:
A) first-degree and second-degree price discrimination, respectively. B) second-degree and third-degree price discrimination, respectively. C) first-degree price discrimination. D) first-degree and third-degree price discrimination, respectively.
In the dominant firm model, the fringe firms
A) are price takers. B) maximize profit by equating average revenue and average cost. C) determine their price and output before the dominant firm determines its price and output. D) all of the above E) none of the above
The national debt as a percentage of GDP has remained roughly constant since the end of World War II
a. True b. False Indicate whether the statement is true or false