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

Author Question: Fab Tools Inc can produce 150 widgets and 100 axes in a month. Another company AllMyTools Inc can ... (Read 49 times)

Pea0909berry

  • Hero Member
  • *****
  • Posts: 573
on: Jun 30, 2018
Fab Tools Inc can produce 150 widgets and 100 axes in a month. Another company AllMyTools Inc can produce 80 widgets and 50 axes per month. Which of the following statements is true?
 a. Fab Tools has an absolute advantage in production of both goods.
  b. AllMyTools has an absolute advantage in production of both goods.
  c. AllMyTools has a comparative advantage in production of axes.
  d. Fab Tools has a comparative advantage in production of widgets only.

Question 2

If a company is producing at a level of output at which the long-run average-total-cost curve reaches a minimum, then the company:
 a. is experiencing economies of scale.
  b. is operating at its minimum efficient scale.
  c. is experiencing increasing returns to scale.
  d. will shut down.
  e. is experiencing diseconomies of scale.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

morganmarie791

  • Sr. Member
  • ****
  • Posts: 336
Reply #1 on: Jun 30, 2018
Answer to Question 1

A

Answer to Question 2

b


Pea0909berry

  • Member
  • Posts: 573
Reply 2 on: Jun 30, 2018
Wow, this really help

apple

  • Member
  • Posts: 352
Reply 3 on: Yesterday
Gracias!

« previous next »
 

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?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Persons who overdose with cardiac glycosides have a better chance of overall survival if they can survive the first 24 hours after the overdose.

Did you know?

Allergies play a major part in the health of children. The most prevalent childhood allergies are milk, egg, soy, wheat, peanuts, tree nuts, and seafood.

Did you know?

Glaucoma is a leading cause of blindness. As of yet, there is no cure. Everyone is at risk, and there may be no warning signs. It is six to eight times more common in African Americans than in whites. The best and most effective way to detect glaucoma is to receive a dilated eye examination.

Bioinformatics tools at the BAR (Bio-Array Resource). Bioinformatics tools at the BAR (Bio-Array Resource).
Furchgott's discovery that endothelial cells produce a vasodilating substance. Furchgott's discovery that endothelial cells produce a vasodilating substance.
The tools necessary to adjust the valves on an engine with adjustable rocker arms include basic hand ... The tools necessary to adjust the valves on an engine with adjustable rocker arms include basic hand ...
6 month old baby in highchair eating 6 month old baby in highchair eating
Nitrogen dioxide decomposes at 300°C via a second-order process to produce nitrogen monoxide ... Nitrogen dioxide decomposes at 300°C via a second-order process to produce nitrogen monoxide ...
Self-crossing F2 plants to produce an F3 generation shows that there are two different genotypes amo Self-crossing F2 plants to produce an F3 generation shows that there are two different genotypes amo
Video: Multiple Sclerosis Animation

For a complete list of videos, visit our video library