Which of the following is true?
a. If average total cost is less than marginal cost, then average total cost is decreasing.
b. If average total cost exceeds marginal cost, then average total cost is decreasing.
c. If average total cost exceeds marginal cost, then average total cost is increasing.
d. If average total cost is less than marginal cost, then average total cost is constant.
b
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Refer to Table 7-5
a. Which person has an absolute advantage in the production of pens? Pencils? b. Which person has a comparative advantage in the production of pens? c. Which person has a comparative advantage in the production of pencils?
Bananas in the European Union often retail for twice more than they do in the U.S. What is the most likely explanation for this fact?
A) A complicated system of tariffs and quotas that the EU has imposed to control the imports of bananas. B) More significant freight costs to ship bananas from Central America. C) Larger markup by European retailers. D) None of the above.