econ hw 5
lease payments for the land on which a firm's factory stands
an example of an explicit cost of production would be the
the value of the business owner's time
an example of an opportunity cost that is also an implicit cost is
trade results in an increase in total surplus
trade enhances the economic well-being of a nation in the sense that
assigning limited tasks to its employees, so they can master those tasks
a firm that wants to achieve economies of scale could do so by
product of an extra worker is less than the previous worker's marginal product
diminishing marginal product suggests that the marginal
the domestic price is equal to the world price
for any country that allows free trade,
be horizontal
if a firm experiences constant returns to scale at all output levels, then its long-run average total cost curve would
average total cost is increasing
if marginal cost is greater than average total cost, then
constant returns to scale
in the long run the local coffee shop insures total costs of $625 when output is 1,250 cups of coffee and $750 when output is 1,500 cups of coffee. For this range of output, the coffee shop exhibits
Ireland has comparative advantage relative to China in producing beer, and the US has a comparative advantage relative to Ireland in producing pineapples
suppose Ireland exports beer to china and imports pineapples from the US. this situation suggests that
lemons & sugar, paper cups, and the wages paid to her hourly workers
suppose jan started up a small lemonade stand business. variable costs for jan's lemonade stand now include the cost of
marginal cost
the amount by which total cost rises when the firm produces one additional unit of output is called
constant returns to scale
the big blue sky jet company has long-run total costs of $20 million if it produces 5 jets and long-run total costs of $24 million if it produces 6 jets. the big blue sky jet company is experiencing
the manner in which costs are defined
the difference between accounting profit and economic profit relates to
world price of sugar
the price of sugar that prevails in international markets is called the