When a producer has the ability to produce a good or service at a lower opportunity cost than others, economists say the producer:
A. has no reason to trade with others.
B. has a comparative advantage at producing that good.
C. has an absolute advantage at producing that good.
D. is efficient in production.
Answer: B
Economics
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Tanesha sells homemade candles over the Internet. Her annual revenue is $64,000 per year, the explicit costs of her business are $17,000, and the opportunity costs of her business are $22,000. What is her accounting profit?
A) $17,000 B) $22,000 C) $47,000 D) $64,000
Economics
A nation can produce two products: steel and wheat. The table below is the nation's production possibilities schedule:
Refer to the above table. The marginal opportunity cost of the third unit of steel is:
A. 18.3 units of wheat
B. 25 units of wheat
C. 20 units of wheat
D. 55 units of wheat
Economics