Is it possible for a firm to have a comparative advantage in producing something without having an absolute advantage? Why or why not?
What will be an ideal response?
Yes, a firm can have a comparative advantage without having an absolute advantage if it can produce a good or service at a lower opportunity cost than competitors, even if it is not able to produce more of the good or service than its competitors.
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The quantity of real GDP demanded equals $16.4 trillion when the price level is 95. If the price level falls to 90, the quantity of real GDP demanded equals
A) less than $16.4 trillion. B) $16.4 trillion. C) more than $16.4 trillion. D) more information is needed to determine if the quantity of real GDP demanded increases, decreases, or does not change.
Conflict resolution of the stockholder-lender conflict in smaller market-oriented firms is most effectively accomplished by
A) financial intermediation (monitoring). B) financial intermediation (ownership consolidation). C) rating agencies. D) managerial compensation.