The firm’s average cost curve is the result of cost minimization in the use of fixed inputs.

Answer the following questions true (T) or false (F)

1. Once a country has a comparative advantage in producing a product, it cannot lose that advantage. 2. One reason a country does not specialize completely in production is that production of most goods involves increasing opportunity costs. 3. One of the main sources of comparative advantage is natural resources.

If the present discounted value of a payment is $1,000,000 and there is a 40 percent chance that the payment will not occur, then the expected value is

A. $1,400,000. B. $1,000,000. C. $400,000. D. $600,000.