The ability of a firm or country to produce a good or service at a lower opportunity cost than other producers is called comparative advantage
Indicate whether the statement is true or false
TRUE
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A firm that is technologically efficient
A) must be economically efficient, but a firm that is economically efficient is not always technologically efficient. B) must be economically efficient, and a firm that is economically efficient must always be technologically efficient. C) is not always economically efficient, and a firm that is economically efficient is not always technologically efficient. D) is not always economically efficient, but a firm that is economically efficient must always be technologically efficient.
Price elasticity of demand can be written as percentage change in Q divided by percentage change in P.
Answer the following statement true (T) or false (F)
Consider a small open economy with desired national saving of Sd = 1000 + 1000rw and desired investment of Id = 1000 - 500rw. Calculate national saving, investment, and the current account balance in equilibrium when the real world interest rate is
(a) rw = 0.025. (b) rw = 0.05. (c) rw = 0.0.
Marginal cost
a. equals the slope of the total cost curve. b. is calculated as DTC/DQ. c. is the increase in total cost resulting from a one-unit increase in output. d. All of the above are correct.