« previous next »

Author Question: Why should an economy specialize and trade according to its marginal cost advantage or comparative ... (Read 49 times)

lilldybug07

  • Hero Member
  • *****
  • Posts: 546
on: Jun 30, 2018
Why should an economy specialize and trade according to its marginal cost advantage or comparative advantage?

Question 2

In economic theory, we assume that the goal of the firm is to:
 a. maximize sales revenue.
  b. maximize market share.
  c. maximize the benefits it provides to its customers.
  d. maximize the profit.
  e. maximize the sales volume.


kswal303

  • Sr. Member
  • ****
  • Posts: 316
Reply #1 on: Jun 30, 2018
Answer to Question 1

Individuals and nations should specialize and trade according to comparative advantage because it ensures an efficient use of resources and benefits both trading partners by allowing them to consume more than what is domestically produced.

Answer to Question 2

d


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Increased intake of vitamin D has been shown to reduce fractures up to 25% in older people.

Did you know?

Excessive alcohol use costs the country approximately $235 billion every year.

Did you know?

A recent study has found that following a diet rich in berries may slow down the aging process of the brain. This diet apparently helps to keep dopamine levels much higher than are seen in normal individuals who do not eat berries as a regular part of their diet as they enter their later years.

Did you know?

There are immediate benefits of chiropractic adjustments that are visible via magnetic resonance imaging (MRI). It shows that spinal manipulation therapy is effective in decreasing pain and increasing the gaps between the vertebrae, reducing pressure that leads to pain.

Did you know?

In the ancient and medieval periods, dysentery killed about ? of all babies before they reach 12 months of age. The disease was transferred through contaminated drinking water, because there was no way to adequately dispose of sewage, which contaminated the water.

Balancing selection and heterozygote advantage. Balancing selection and heterozygote advantage.
New Yorkers flee from the dust caused by the collapse of the twin towers of the World Trade Center f New Yorkers flee from the dust caused by the collapse of the twin towers of the World Trade Center f
Latin America in the Global Economy Latin America in the Global Economy
Marginal Supply - Demand Curve Marginal Supply - Demand Curve
A Production Function with Diminishing Marginal Product of Capital A Production Function with Diminishing Marginal Product of Capital
Project Management: Achieving Competitive Advantage, 5th Edition Project Management: Achieving Competitive Advantage, 5th Edition
Video: Griffith's experiments

For a complete list of videos, visit our video library