The ability to produce a good or service at a lower opportunity cost than other producers incur is known as
a. absolute advantage.
b. comparative advantage.
c. comparative specialization.
d. absolute specialization.
b. comparative advantage.
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A payday loan company has decided to open several new locations in the city. To decide where to open these locations it hires consultants and pays them per store opened. At the end of the quarter, the company notices a many of the new stores' sales volume fail to meet expectations. To incentivize the consultants to instead focus on opening profitable stores, the company should have paid them
a. Per store opened b. A percentage of the profit earned per new store c. A fixed salary d. All of the above
Dan Unowsky assigns his computer repairers four tasks: customer service, replacement of broken parts, clean-up of equipment, and sale of used equipment to customers. If the company provides a 10 percent commission for all sales made by employees, then
A. employees will clearly emphasize the clean-up task. B. replacement of broken parts will clearly be favored by employees. C. employees may ignore other tasks when faced with a potential sale. D. the entire production process will be speeded up by the sales incentive.
Refer to the table at right. If the price of the product is? $1.50, and the marginal factor cost of an additional unit of an input is? $105, how many units of labor should be? hired?
A. 12
B. 11
C. 14
D. 13
High profits in some risky industries attract additional entrepreneurs to those industries.
Answer the following statement true (T) or false (F)