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 47 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
Gracias!

Viet Thy

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Excellent

« previous next »
 

Did you know?

A cataract is a clouding of the eyes' natural lens. As we age, some clouding of the lens may occur. The first sign of a cataract is usually blurry vision. Although glasses and other visual aids may at first help a person with cataracts, surgery may become inevitable. Cataract surgery is very successful in restoring vision, and it is the most frequently performed surgery in the United States.

Did you know?

There are more bacteria in your mouth than there are people in the world.

Did you know?

Approximately 500,000 babies are born each year in the United States to teenage mothers.

Did you know?

Bacteria have been found alive in a lake buried one half mile under ice in Antarctica.

Did you know?

Asthma is the most common chronic childhood disease in the world. Most children who develop asthma have symptoms before they are 5 years old.

Furchgott's discovery that endothelial cells produce a vasodilating substance. Furchgott's discovery that endothelial cells produce a vasodilating substance.
Durkheim believed that modern societies produce feelings of isolation, much of which come from the ... Durkheim believed that modern societies produce feelings of isolation, much of which come from the ...
Examples of the most common X-ray positions and the images they produce. Examples of the most common X-ray positions and the images they produce.
As some groups do ethnic work, they produce a mythical long-lost heritage, as in this photo of ... As some groups do ethnic work, they produce a mythical long-lost heritage, as in this photo of ...
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 ...
A company purchased 26 desks for $240 each and 18 chairs for $59 each. Compute the total ... A company purchased 26 desks for $240 each and 18 chairs for $59 each. Compute the total ...
Video: ACTH/Cortisol (glycogenolysis, protein catabolism, lipolysis and gluconeogenesis)

For a complete list of videos, visit our video library