Comparative advantage is
A. the ability to produce a good at a lower opportunity cost than other producers.
B. the ability to produce more output of all goods than anyone else can.
C. the ability to produce more output from given inputs than another producer can.
D. the ability to produce all goods at lower costs than anyone else can.
Answer: A
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Use the following table to answer the question below.Price per UnitQuantity Demanded per YearQuantity Supplied per Year$52,0000101,800300151,600600201,400900251,2001,200301,0001,500At a price of $15 per unit, which of the following would exist?
A. A surplus of 600 units. B. A shortage of 1,000 units. C. A surplus of 1,000 units. D. A shortage of 1,600 units.
An oligopoly may result from:
a. low or no barriers to entry. b. Standardization of a product. c. price-taking conditions for both buyers and sellers. d. increasing returns to scale
Refer to the above graph for a firm in pure competition. Line B represents:
A. marginal revenue. B. average total cost. C. average fixed cost. D. total revenue.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4According to Figure 2.4, Point F
A. is efficient and attainable. B. cannot be produced with the current state of technology. C. represents underallocation of resources. D. represents what the people want.