If you have a comparative advantage in a particular task, then:
A. you have specialized in that task, while others have not.
B. you complete it faster than other people.
C. you give up less to accomplish that task than do others.
D. you give up more to accomplish that task than do others.
Answer: C
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The practice of a firm setting a price so low that all firms incur losses is called
a. a tournament. b. predatory pricing. c. a buy-out strategy. d. a contestable market.
The following are hypothetical exchange rates: 2 euros = 1 pound; $1 = 2 pounds. We can conclude that ________.
A. $1 = 0.5 euro B. 1 euro = $2 C. 1 euro = $0.50 D. $1 = 4 euros
What is barter? What is a double coincidence of wants? How does the existence of money affect barter?
What will be an ideal response?
Assume the figure applies to a pure monopolist and that MC is the same for both graphs. If this firm is able to price discriminate between children and adults, its economic profit will be:
A. (P 2 - MC) × (Q 1C + Q 2 ).
B. (P 1 - MC) × (Q 1C + Q 2 ).
C. (P 2 - P 1 ) × (Q 1C + Q 2 ).
D. [(P 1 - MC) × Q 1C ] + [(P 2 - MC) × Q 2 ].