Comparative advantage refers to a country's:
A. Ability to produce a specific good with fewer resources than another country.
B. Monopoly power in the world market for a specific good.
C. Ability to sell a specific good for a higher price than another country.
D. Ability to produce a specific good at a lower opportunity cost than another country.
D. Ability to produce a specific good at a lower opportunity cost than another country.
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Armpit Homunculus Prescott Pharmaceuticals is facing class action suit over side effects caused by its latest growth supplement. The lawyers representing the class are asking $200 million because they claim Prescott knew about and hid the fact that the
supplement caused Armpit Homunculus. Prescott claims it had no foreknowledge of this and can take their chance at trial where they expect a $50 million payment. Just before the trial date, an internal Prescott email is discovered in which Dr. Colbert, D.F.A. is joking about "how hideous the armpits will be on all these giants.". How does this affect the likely cost of settling the case?
Invention alone does not explain why free market societies have experienced such rapid rates of economic growth
a. True b. False Indicate whether the statement is true or false
Thomas Edison once complained that he was not making a profit selling light bulbs because his plants were operating 25 percent below capacity. He estimated that he could increase output 25 percent with a 2 percent increase in the cost of production. He sold the 25 percent on the foreign market at a price below what he called the "cost of production." We can deduce that Edison really meant
a. Marginal cost was below average cost but less than marginal revenue. b. Average cost exceeded variable cost, which exceeded marginal revenue. c. Variable cost exceeded fixed cost but was less than marginal revenue. d. Marginal cost was above average cost but greater than marginal revenue.
The long-run price elasticity of demand is usually larger than the short-run price elasticity of demand because:
A. demand curves tend to become steeper over time. B. economists take the absolute value of long-run price elasticities but not of short-run elasticities. C. people have more time to find substitute goods. D. incomes tend to rise over time.