Maximum Feasible Hourly Production Rates (in Tons) of EitherKnives or Forks Using All Available ResourcesProductCountry AlphaCountry BetaKnives93Forks612Use the above table. Assuming constant opportunity costs, if countries Alpha and Beta specialize based on comparative advantage, then they will trade if the rate of exchange is
A. 5 knives for 1 fork, and Alpha imports forks.
B. 0.5 fork for 1 knife, and Beta imports knives.
C. 6 forks for 1 knife, and Beta imports knives.
D. 0.5 knives for 1 fork, and Alpha imports forks.
Answer: D
You might also like to view...
Retailers and other middlemen provide benefits to patrons
A) because people don't realize how much they could save by cutting out middlemen. B) but the middlemen benefit far more. C) by lowering the cost to their customers of acquiring valuable information. D) only because their customers are irrational.
Any costly activity firms undertake to protect their monopoly status is referred to as
a. market power b. price-setting behavior c. rent seeking d. economies of scale e. legal intervention
Over the past six decades, the U.S. economy has experienced a dramatic increase in the relative importance of international trade and finance
a. True b. False Indicate whether the statement is true or false
Regulation of monopolies that allows prices to reflect only the actual cost of production and no monopoly profits is referred to as
A) cost-of-service regulation. B) rate-of-return regulation. C) service-opportunity regulation. D) natural regulation.