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