Refer Exhibit 2-10. Which of the following statements is true?
 ANSWER 11.png)
There would be no gains from trade between person A and person B because the opportunity cost of producing one unit of good X (or one unit of good Y) is the same for both persons.
You might also like to view...
Market failure is a situation in which
A. the market does not provide the ideal or optimal amount of a particular good. B. there are too many buyers but not enough sellers. C. prices are too high for "average" people to buy necessities. D. there is a question over the quality of a product for sale.
The difference between government receipts and government expenditures is called a _____
a. loss b. shortfall c. deficit d. debt
If U.S. securities pay 6 percent interest, and if Great Britain's securities pay 8 percent interest, then
a. pounds depreciate relative to dollars. b. pounds appreciate relative to dollars. c. Great Britain's imports will fall. d. Great Britain's exports will rise.
Average revenue is conceptually equivalent to the:
A. Unit price of the product B. Average cost of the product C. Marginal cost of the product D. Marginal revenue of the product