A person has a comparative advantage in producing a particular good if that person
A) has higher productivity in producing it than anyone else has.
B) can produce it at lower opportunity cost than anyone else can.
C) has less desire to consume that good than anyone else has.
D) has more human capital related to that good than anyone else has.
Question 2
A monopolist maximizes its profit by producing the amount of output that sets
A) total revenue equals total cost.
B) marginal revenue equals marginal cost.
C) marginal revenue equals zero.
D) price equals marginal cost.
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