Comparative advantage occurs when a person or a country can produce a good or service at a lower ____ than others
a. fixed cost
b. variable cost
c. opportunity cost
d. total cost
c
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The table above provides cost data for a perfectly competitive firm producing toy cars. The firm is producing non-divisible goods. If the market price is $70 and the firm is a profit maximizer, the firm can earn a maximum economic profit of ________
A) a loss of $500 B) a loss of $10 C) a loss of $510 D) $210
The fact that some consumers will purchase a nine-ounce bottle of Evian water for $1.49, equivalent to $21.19 per gallon, illustrates the principle that the additional cost of the water is greater than the additional benefit
a. True b. False
Of the following, what is the best example of structural unemployment?
a) a computer programmer who quits her job to move to a warmer climate b) a construction worker who loses his job in the winter c) an auto worker who loses her job during a recession d) a steel worker who is replaced by a robot e) a toymaker who worked for a company that closed because consumers did not buy its toys
If the marginal cost for the state of Montana to increase the speed limit on its interstate highways to 100 mph is estimated to be $500 per day, then Montana should increase the speed limit to 100 mph
A) only if the marginal benefit received each day is less than $500. B) as long as the marginal benefit received each day is just equal to or greater than $500. C) as long as the daily marginal cost is lower than it had been before the speed limit increase. D) unless the marginal benefit received falls to zero.