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 69 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
Thanks for the timely response, appreciate it


kilada

  • Member
  • Posts: 311
Reply 3 on: Yesterday
:D TYSM

 

Did you know?

Fungal nail infections account for up to 30% of all skin infections. They affect 5% of the general population—mostly people over the age of 70.

Did you know?

Vital signs (blood pressure, temperature, pulse rate, respiration rate) should be taken before any drug administration. Patients should be informed not to use tobacco or caffeine at least 30 minutes before their appointment.

Did you know?

Throughout history, plants containing cardiac steroids have been used as heart drugs and as poisons (e.g., in arrows used in combat), emetics, and diuretics.

Did you know?

Intradermal injections are somewhat difficult to correctly administer because the skin layers are so thin that it is easy to accidentally punch through to the deeper subcutaneous layer.

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.

For a complete list of videos, visit our video library