A perfectly competitive firm's marginal revenue
a. curve is a vertical line
b. equals price
c. rises at a constant rate
d. rises at an increasing rate
e. falls at a constant rate
B
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Refer to Table 2-20. Does either Japan or Thailand have an absolute advantage and if so, in what product?
A) Thailand has an absolute advantage in rice. B) Japan has an absolute advantage in rice. C) Japan has an absolute advantage in wristwatches. D) Thailand has an absolute advantage in both products.
Suppose the production of long-distance airline flights is described by a fixed proportion production process in which three crew members (i.e., labor) are required for each aircraft (i.e., capital)
If the airline operates with four crew members per plane, then we know that: A) the production process violates diminishing margin returns. B) production at this point is technically inefficient. C) the isoquants for this production process are upward sloping. D) the airline will have negative profits.