Author Question: Country A can produce 1 cello by giving up the production of 5 guitars. Country B can produce 1 ... (Read 112 times)

laurencescou · **on:** Jun 29, 2018

Country A can produce 1 cello by giving up the production of 5 guitars. Country B can produce 1 guitar by giving up the production of 4 cellos. In which good does country A have a comparative advantage?

A) guitars
B) cellos
C) both goods
D) neither good

Question 2

To maximize its profit, a firm will hire more workers as long as

A) marginal revenue exceeds the wage rate.
B) marginal revenue is less than the wage rate.
C) value of marginal product exceeds the wage rate.
D) marginal product exceeds the wage rate.