Comparative advantage is illustrated by the slopes of production possibilities frontiers.
Answer the following statement true (T) or false (F)
True
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Though the countries can benefit by completely specializing in the production of the good in which they have comparative advantage, in real world however, they do not completely specialize
a. True b. False Indicate whether the statement is true or false
For a monopolistic competitor:
A. P = MC. B. P > MR. C. MR > MC. D. P = MR.
The exiting of firms from a perfectly competitive industry occurs when
A) opportunity costs cannot be covered. B) P = ATC. C) accounting profit is less than economic profit. D) MR equals MC.
In situations in which prices cannot be used to signal relative scarcities of goods, which of the following can serve as a rationing mechanism?
A) queuing B) political power C) random assignment D) all of the above