Author Question: Why should an economy specialize and trade according to its marginal cost advantage or comparative ... (Read 51 times)

lilldybug07

  • Hero Member
  • *****
  • Posts: 546
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
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
 

Did you know?

Medication errors are more common among seriously ill patients than with those with minor conditions.

Did you know?

Famous people who died from poisoning or drug overdose include, Adolf Hitler, Socrates, Juan Ponce de Leon, Marilyn Monroe, Judy Garland, and John Belushi.

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.

Did you know?

Studies show that systolic blood pressure can be significantly lowered by taking statins. In fact, the higher the patient's baseline blood pressure, the greater the effect of statins on his or her blood pressure.

Did you know?

The first oral chemotherapy drug for colon cancer was approved by FDA in 2001.

For a complete list of videos, visit our video library