According to the law of comparative advantage, both individuals and nations will be able to produce a larger joint output if each productive activity is undertaken by
a. the high opportunity cost producer.
b. the low opportunity cost producer.
c. the producer who is able to hire workers at the lowest wage.
d. the party that can complete the productive activity most rapidly.
B
Economics
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The rate at which a firm is able to substitute one input for another while keeping the level of output constant is called the
A) marginal rate of technical substitution. B) isoquant substitution rate. C) opportunity cost of inputs. D) input trade-off rate.
Economics
Constant returns to scale (CRS) implies ________
A) constant returns to labor B) constant returns to capital C) increasing marginal products D) variable total factor productivity E) diminishing marginal products
Economics