This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Fab Tools Inc can produce 150 widgets and 100 axes in a month. Another company AllMyTools Inc can ... (Read 43 times)

Pea0909berry

  • Hero Member
  • *****
  • Posts: 573
on: Jun 30, 2018
Fab Tools Inc can produce 150 widgets and 100 axes in a month. Another company AllMyTools Inc can produce 80 widgets and 50 axes per month. Which of the following statements is true?
 a. Fab Tools has an absolute advantage in production of both goods.
  b. AllMyTools has an absolute advantage in production of both goods.
  c. AllMyTools has a comparative advantage in production of axes.
  d. Fab Tools has a comparative advantage in production of widgets only.

Question 2

If a company is producing at a level of output at which the long-run average-total-cost curve reaches a minimum, then the company:
 a. is experiencing economies of scale.
  b. is operating at its minimum efficient scale.
  c. is experiencing increasing returns to scale.
  d. will shut down.
  e. is experiencing diseconomies of scale.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

morganmarie791

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

b


Pea0909berry

  • Member
  • Posts: 573
Reply 2 on: Jun 30, 2018
:D TYSM

31809pancho

  • Member
  • Posts: 317
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

« previous next »
 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

The term bacteria was devised in the 19th century by German biologist Ferdinand Cohn. He based it on the Greek word "bakterion" meaning a small rod or staff. Cohn is considered to be the father of modern bacteriology.

Did you know?

In ancient Rome, many of the richer people in the population had lead-induced gout. The reason for this is unclear. Lead poisoning has also been linked to madness.

Did you know?

Anesthesia awareness is a potentially disturbing adverse effect wherein patients who have been paralyzed with muscle relaxants may awaken. They may be aware of their surroundings but unable to communicate or move. Neurologic monitoring equipment that helps to more closely check the patient's anesthesia stages is now available to avoid the occurrence of anesthesia awareness.

Did you know?

Oliver Wendell Holmes is credited with introducing the words "anesthesia" and "anesthetic" into the English language in 1846.

Furchgott's discovery that endothelial cells produce a vasodilating substance. Furchgott's discovery that endothelial cells produce a vasodilating substance.
The Procedure Used to Produce Conditioned Emotional Responses The Procedure Used to Produce Conditioned Emotional Responses
Examples of the most common X-ray positions and the images they produce. Examples of the most common X-ray positions and the images they produce.
The primary response causes B cells to produce memory B cells and a few antibodies. The second ... The primary response causes B cells to produce memory B cells and a few antibodies. The second ...
Find the factor demand for labour and the amount of output it will produce. Show all ... Find the factor demand for labour and the amount of output it will produce. Show all ...
Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ... Jia's Fashions recently paid a $2 annual dividend. The company is projecting that its ...
Video: Cellular slime mold life cycle Animation

For a complete list of videos, visit our video library