This topic contains a solution. Click here to go to the answer

Author Question: In the short run, if a perfectly competitive firm produced at the quantity of productive efficiency, ... (Read 71 times)

rayancarla1

  • Hero Member
  • *****
  • Posts: 571
In the short run, if a perfectly competitive firm produced at the quantity of productive efficiency, would it generate the highest profit level possible? Why or why not?

Question 2

According to the Ricardian model, the source of comparative advantage is:
 a. differences in labor productivity in different countries.
  b. differences in foreign trade policies followed by the government of various countries.
  c. differences in resource endowments of an economy.
  d. differences in the fields of research and development in a country.
  e. differences in the taste and preferences of the consumers in different countries.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jointhecircus

  • Sr. Member
  • ****
  • Posts: 343
Answer to Question 1

In the short run, a firm producing with productive efficiency would not necessarily generate the highest level possible. Productive efficiency occurs at the lowest point on the ATC curve which can be found where MC = ATC. However, this is not likely to be the same as the quantity of profit maximization which is found at the point where MC = MR.

Answer to Question 2

a




rayancarla1

  • Member
  • Posts: 571
Reply 2 on: Jun 30, 2018
Excellent


laurnthompson

  • Member
  • Posts: 334
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

There are more sensory neurons in the tongue than in any other part of the body.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

A seasonal flu vaccine is the best way to reduce the chances you will get seasonal influenza and spread it to others.

Did you know?

The word drug comes from the Dutch word droog (meaning "dry"). For centuries, most drugs came from dried plants, hence the name.

Did you know?

About 80% of major fungal systemic infections are due to Candida albicans. Another form, Candida peritonitis, occurs most often in postoperative patients. A rare disease, Candida meningitis, may follow leukemia, kidney transplant, other immunosuppressed factors, or when suffering from Candida septicemia.

For a complete list of videos, visit our video library