Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour
A) Brenda has an absolute advantage in the production of X and Y.
B) Agnes has a comparative advantage in the production of Y.
C) Brenda has a comparative advantage in the production of X.
D) Brenda cannot gain from trade.
A
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As U.S. real GDP rises, wealthier households may decide to buy ________ foreign goods and assets, which would cause a(n) ________ of the U.S. dollar.
A. more; appreciation B. fewer; appreciation C. more; depreciation D. fewer; depreciation
According to the process of creative destruction, at first the entrepreneur will be able to sell the product for
A. a low price because it is not well known. B. a high price because there is no competition. C. a fair price because these are contestable markets. D. at a price of zero until the market is created.
The way one unit of a firm relates to another in the same firm is referred to as being
A) upstream or downstream. B) latitudinal or longitudinal. C) left or right. D) competitor or conspirator.
If the total cost function is TC = 10Q3 - 50Q2 + 1000Q + 500, what is the equation for AFC?
What will be an ideal response?