Jimbo has a comparative advantage over Ned in producing a good if
A) Jimbo can produce more of the good than Ned can in a given time period.
B) Jimbo has a higher opportunity cost of producing the good than does Ned.
C) Jimbo has a lower opportunity cost of producing the good than does Ned.
D) Jimbo has to trade off more than Ned does to produce the good.
C
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If a monopolist faces a linear demand curve, its marginal revenue curve will be:
A) horizontal. B) vertical. C) twice as steep as the demand curve. D) four times as steep as the demand curve.
A rise in the price of an input can be expected to lead to a rise in its marginal physical product
a. True b. False Indicate whether the statement is true or false
Made in the USA or Made in China has less meaning for products that
A) are a commodity such as iron ore. B) are an agricultural product such as wheat. C) are a product that is technological and involves assembling many different types of sometimes sophisticated components. D) are a product that is produced and consumed domestically. E) were produced fifty years ago versus the types of products manufactured today.
To calculate the revenue government receives when a tax is imposed on a good, multiply the
A) pre-tax equilibrium price by the pre-tax quantity. B) after-tax equilibrium price by the after-tax quantity. C) tax by the pre-tax quantity. D) tax by the after-tax quantity. E) after-tax equilibrium price by the after-tax quantity and then subtract the pre-tax equilibrium price multiplied by the pre-tax quantity.