Canada produces MP3 players and lumber, and the marginal costs for the two products are $200 per 1,000 board-feet of lumber and $100 per MP3 player
China also produces these goods, and the marginal costs are $300 per 1,000 board-feet of lumber and $100 per MP3 player. Which country has the comparative advantage in lumber production? A) Canada
B) China
C) Both countries share the comparative advantage.
D) We need more information to answer this question.
A
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Rational choice by an individual implies
a. the use of some mathematical model when solving a problem b. making decisions aimed at achieving some predetermined goal c. that only monetary costs and benefits are weighed d. that an individual will never regret any action taken e. that scarcity can be eliminated for that individual
Which of the following actions should be discussed with an attorney before undertaking as the action could be considered legal?
A) an agreement with a competitor firm not to bid on a contract B) an agreement with a competitor firm to set prices C) an exclusive dealings contract with a customer D) an agreement with a competitor firm submit a low bid on a contract