"When a person has an absolute advantage in producing a good, the person necessarily has a lower opportunity cost of producing it." Is this assertion correct or incorrect? Explain your answer
What will be an ideal response?
The assertion is incorrect. An absolute advantage is when a person can produce more of the good than someone else. A comparative advantage relies on a comparison of opportunity costs, so a person has a comparative advantage in producing a good if the person can produce the good at a lower opportunity cost.
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Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. Number of WorkersPizzas Baked Per Day00110218324430532How many workers will Joe hire if he must pay each one $35 a day?
A. 1 B. 2 C. 3 D. 4
A perfectly competitive firm maximizes its profits by producing the amount of output such that
A) MR = P. B) MR = MC. C) P = AVC. D) P = ATC.
Fred lost his factory job, replaced by welding robots. He is now going to technical school to learn computer repair because he cannot find a similar job to the one he lost. Fred is: a. Frictionally unemployed. b. Structurally unemployed. c. Cyclically unemployed
d. Not unemployed.
An increase in wages will shift the supply curve up and to the left.
Answer the following statement true (T) or false (F)