Author Question: If you have a comparative advantage in producing a good, it implies: a. you have a lower marginal ... (Read 49 times)

leilurhhh · **on:** Jun 30, 2018

If you have a comparative advantage in producing a good, it implies:
a. you have a lower marginal cost of producing that good.
b. you have a higher marginal cost of producing that good.
c. you have a lower total cost of producing that good.
d. you have a higher total cost of producing that good.

Question 2

As the confectionary, Mrs. Fields' Cookies, gained popularity in California and decided to expand its operations to Utah, it was able to achieve economies of scale. This means that:
a. property taxes were lower in its new location in Utah.
b. transport and communication systems were more developed in Utah.
c. wages were higher in Utah compared to California.
d. expansion of output and firm size led to specialization among the workers.
e. government policies were more favorable in Utah.