The marginal benefit Susie gets from purchasing a third pair of gloves is
a. the same as the total benefit she gets from purchasing three pairs of gloves.
b. more than the marginal cost of purchasing the third pair of gloves.
c. the total benefit she gets from purchasing three pairs of gloves minus the total benefit she gets from purchasing two pairs of gloves.
d. the total benefit she gets from purchasing four pairs of gloves minus the total benefit she gets from purchasing three pairs of gloves.
c
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The representative consumer's discount factor B
A. equals the share of production going to labor B. is a parameter capturing how patient the consumer is C. is a choice parameter controlling consuming versus saving D. is the reduction in price from a competitive factor market
The first example of comparative advantage appeared in a book that was published in 1817. This example showed that mutually beneficial trade between two countries (England and Portugal) was possible
The example assumed that two goods (wine and cloth) could be produced by both countries. Which of the following describes the conclusion of this example? A) England had an absolute advantage in both wine and cloth, but a comparative advantage in wine. B) Portugal had a comparative advantage in both wine and cloth, but its advantage in cloth was greater. C) Portugal had a comparative advantage in wine and England had a comparative advantage in cloth. D) England had a comparative advantage in both wine and cloth, but its advantage in cloth was greater.