If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour then
A) Irene has the absolute advantage in the production of chairs.
B) Irene has the comparative advantage in the production of tables.
C) Greg has the absolute advantage in the production of chairs.
D) Greg has the comparative advantage in the production of chairs.
Answer: A
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If it costs $8 to produce a certain product and the product sells for $9, then
a. the markup is approximately 11.1 percent b. the market for this product must be monopolistic c. the markup is $1 d. firms in this industry should shut down to minimize their losses e. the revenue gained from the last unit produced is $1
Free entry and exit means that the number of firms in the market adjusts until
a. producers continuously enter the market freely. b. the market grows to a profitable level. c. economic profits are driven to zero. d. products are free.
Refer to the table below. Suppose all firms in this industry have identical costs to this firm and are producing 15 units of output. One can predict that:QuantityTotal RevenueExplicit CostsImplicit Costs1050365157563620100937251251258301501619
A. old firms will exit the industry. B. price must rise. C. new firms will enter the industry. D. firms will attempt to lower their implicit costs.
Either the buyer or seller has an influence on the market price
What will be an ideal response?