Refer to the above figure. Mario is self-sufficient and so is Mia. Each produces 6 dishes of pasta and 4 pizzas. Mario and Mia decide to specialize and trade
After they have specialized and traded, compared to the initial situation, Mia's opportunity cost of pasta has ________ and Mario's opportunity cost of a pizza has ________. A) decreased, decreased
B) decreased, increased
C) increased, increased
D) increased, decreased
C
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The positive relationship between short-run aggregate supply and the price level indicates that, in the short run
A) firms produce more output as the price level falls. B) firms produce more output as the price level rises. C) the money wage rate increases when moving along the short-run aggregate supply curve. D) lower price levels are more profitable for firms.
Consider a tariff levied on the importer of a consumer good. The tariff is ultimately paid by
a. the importer. b. the consumer. c. competing foreign firms. d. competing domestic firms.
Discuss the problem of clear benefits and hidden costs related to government programs. Why can it result in inefficiency?
Please provide the best answer for the statement.
A firm produces output according to the production function, q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. What is the minimum cost of producing 1140 units of output?
A) Cost = $780 B) Cost = $694 C) Cost = $2,071 D) Not enough information is given to answer this problem.