Using the data in the above table and assuming constant opportunity costs, it is correct to state that
A) the United States has a comparative advantage in producing cloth.
B) Mexico has an absolute advantage in producing both food and cloth.
C) the United States has a comparative advantage in producing both food and cloth.
D) Mexico has a comparative advantage in producing cloth.
A
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An efficient way to get a tire manufacturer to produce the socially optimal output level is
A) to impose a tax to make the tire manufacturer bear the external cost it creates. B) for government to set a quota on the quantity of tires that it can produce. C) to grant a subsidy to enable the manufacturer to internalize the external costs of production. D) to assign property rights to the tire manufacturer.
Marginal revenue
a. Is the additional revenue incurred by selling one more unit b. Is the total revenue incurred by selling one more unit c. Is the total revenue incurred by selling all the firm's output d. Is the difference between total revenue and total costs