Author Question: In a two-person economy, Adam and Brandon both produce corn and cars. Adam's marginal cost of ... (Read 161 times)

lilldybug07 · **on:** Jun 30, 2018

In a two-person economy, Adam and Brandon both produce corn and cars. Adam's marginal cost of producing a car is 50 tons of corn, while Brandon's marginal cost is 70 tons of corn. In this economy, Brandon should produce cars and Adam should produce corn.
Indicate whether the statement is true or false

Question 2

A firm's marginal cost equals the:
a. ratio of total cost to total quantity.
b. slope of the demand curve under perfect competition.
c. slope of the total product curve when the latter is at its maximum.
d. change in total cost divided by the change in total output.
e. slope of the supply curve.