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 10 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
Great answer, keep it coming :)

sultansheikh

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Gracias!

« previous next »
 

Did you know?

Though methadone is often used to treat dependency on other opioids, the drug itself can be abused. Crushing or snorting methadone can achieve the opiate "rush" desired by addicts. Improper use such as these can lead to a dangerous dependency on methadone. This drug now accounts for nearly one-third of opioid-related deaths.

Did you know?

Women are two-thirds more likely than men to develop irritable bowel syndrome. This may be attributable to hormonal changes related to their menstrual cycles.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

Most strokes are caused when blood clots move to a blood vessel in the brain and block blood flow to that area. Thrombolytic therapy can be used to dissolve the clot quickly. If given within 3 hours of the first stroke symptoms, this therapy can help limit stroke damage and disability.

Did you know?

Giardia is one of the most common intestinal parasites worldwide, and infects up to 20% of the world population, mostly in poorer countries with inadequate sanitation. Infections are most common in children, though chronic Giardia is more common in adults.

Maps are important tools in political science as they help us see relationships between politics and Maps are important tools in political science as they help us see relationships between politics and
As some groups do ethnic work, they produce a mythical long-lost heritage, as in this photo of ... As some groups do ethnic work, they produce a mythical long-lost heritage, as in this photo of ...
An engine in good mechanical condition should produce 17 to 21 inches Hg of vacuum at idle at sea ... An engine in good mechanical condition should produce 17 to 21 inches Hg of vacuum at idle at sea ...
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 ...
Nitrogen dioxide decomposes at 300°C via a second-order process to produce nitrogen monoxide ... Nitrogen dioxide decomposes at 300°C via a second-order process to produce nitrogen monoxide ...
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: Oral Hygiene & Braces Animation

For a complete list of videos, visit our video library