A person has a comparative advantage in producing a good if that person:
a. can produce the good at a lower absolute cost than anyone else.
b. can produce the good at a lower opportunity cost than anyone else.
c. can do a better job than anyone else.
d. spends more money in out-of-pocket expenses than anyone else.
e. can produce the good at a higher opportunity cost than anyone else.
b
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City-Mart is the only employer of sales clerks in Panburg. In the figure above S is the labor supply curve faced by City-Mart, VMP is City-Mart's value of marginal product curve, and MCL is its marginal cost of labor curve
The lowest wage rate at which City-Mart can hire 40 hours of labor per day is A) $8 per hour. B) $12 per hour. C) $4 per hour. D) $9 per hour.
Real business cycle theorists agree with new Keynesian economists that
a. agents maximize utility. b. the labor market do not clear. c. AS shocks can play a big role in business cycles. d. Both a and c.