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

Author Question: What four decisions must firms with market power make? What will be an ideal ... (Read 34 times)

Metfan725

  • Hero Member
  • *****
  • Posts: 552
on: Jun 29, 2018
What four decisions must firms with market power make?
 
  What will be an ideal response?

Question 2

Suppose in the United States, the opportunity cost of producing a motor engine is 4 auto bodies. In Canada, the opportunity cost of producing a motor engine is 2 auto bodies.
 
  a. What is the opportunity cost of producing an auto body for the United States?
  b. What is the opportunity cost of producing an auto body for Canada?
  c. Which country has a comparative advantage in the production of auto bodies?
  d. Which country has a comparative advantage in the production of motor engines?


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

bigsis44

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 29, 2018
Answer to Question 1

(1.) How much to produce.
(2.) Which technology to use.
(3.) How much of each input to use.
(4.) What price to charge for their product.

Answer to Question 2

a. For the United States, the opportunity cost of producing an auto body is 1/4 of a motor engine.
b. For Canada, the opportunity cost of producing an auto body is 1/2 of a motor engine.
c. The United States has a comparative advantage in the production of auto bodies.
d. Canada has a comparative advantage in the production of motor engines.


Metfan725

  • Member
  • Posts: 552
Reply 2 on: Jun 29, 2018
Gracias!

epscape

  • Member
  • Posts: 335
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Drying your hands with a paper towel will reduce the bacterial count on your hands by 45–60%.

Did you know?

In 1864, the first barbiturate (barbituric acid) was synthesized.

Did you know?

Human kidneys will clean about 1 million gallons of blood in an average lifetime.

The effective temperature, or black body temperature, of the Sun (5777 K) is the temperature a black The effective temperature, or black body temperature, of the Sun (5777 K) is the temperature a black
Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four Table 6.1 illustrates the main regime types and their differences. It breaks the regimes into four
To make an ice pack, place crushed ice in a plastic bag, bleed the air out of it, and seal it. Wrap To make an ice pack, place crushed ice in a plastic bag, bleed the air out of it, and seal it. Wrap
Biomass can be processed to make vehicle fuels Biomass can be processed to make vehicle fuels
The growing demand for electrical power, carbon sequestration and storage must be a priority The growing demand for electrical power, carbon sequestration and storage must be a priority
The demand for cheap coal to generate electrical power is rising The demand for cheap coal to generate electrical power is rising
Video: Transmission Across a Synapse

For a complete list of videos, visit our video library