If Evan has an absolute advantage in cleaning and bookkeeping when compared to Gloria, then
a. Evan must also have a comparative advantage in cleaning and bookkeeping
b. Evan must have a comparative advantage in cleaning
c. Evan must have a comparative advantage in bookkeeping
d. Gloria has a comparative advantage in neither activity
e. we can conclude nothing about comparative advantage
E
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If every firm is a price taker, then which of the following characteristics does their industry have?
a. large number of sellers b. many versions of the product c. limited resource mobility d. few consumers e. market power
If marginal cost equals marginal revenue on the downward-sloping segment of the marginal cost curve, then increasing production until marginal cost again equals marginal revenue, this time on the upward-sloping segment of the marginal cost curve, is a profit- maximizing decision
Indicate whether the statement is true or false