A nation has a comparative advantage in a good when it has a
A) higher opportunity cost of producing the good.
B) tariff in place protecting the producers of the good.
C) higher absolute cost of producing the good.
D) lower absolute cost of producing the good.
E) lower opportunity cost of producing the good.
E
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For a perfectly competitive firm, the price of its good is equal to the firm's marginal revenue because
A) information about price changes is hard to come by for small sellers. B) price and marginal revenue are the same economic concepts. C) individual perfectly competitive firms cannot influence the market price by changing their output. D) the firm's total revenue cannot be changed by anything the firms can do. E) there are only a small number of firms in the market.
What role does a company like J.D. Power (which provides product satisfaction reviews) serve?
A) It provides a screening test. B) It provides a signal of quality. C) It reduces moral hazard. D) It reduces costs of giving surveys.