Suppose that opportunity costs are constant in both France and Germany. In France, maximum feasible hourly production levels are either 3 units of wheat or 5 units of wine. In Germany, maximum feasible hourly production levels are either 4 units of wheat
or 10 units of wine. It is correct to state that
A) Germany has an comparative advantage in producing both wheat and wine.
B) Germany has a comparative advantage in producing wine.
C) France has a comparative advantage in producing both wheat and wine.
D) France has a comparative advantage in producing wine.
Answer: B
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All business firms should consider their fixed costs in determining the prices they set.
Answer the following statement true (T) or false (F)
The difference between a firm's total revenue and what must be paid to attract resources from their best alternative use is called
a. total revenue b. utility c. economic profit d. cost e. production efficiency
If people cannot distinguish between goods A and B, then economists describe the goods as
a. having a zero cross elasticity b. being perfect substitutes c. belonging to an oligopolistic industry d. belonging in different markets e. having a cross elasticity of one
Decentralized decisionmaking is very controversial in a corporate environment. Central office managers feel like they are losing control of managers in specific plants or regional offices. What are some of the issues that must be reviewed before making the final decision on where to place final decision-making power?
What will be an ideal response?