If a Firm or a Nation Desires to Maximize Its

question 5

Multiple Choice

If a firm or a nation desires to maximize its output, each productive assignment should be carried out by those persons who

• A) have the highest opportunity cost.
• B) have a comparative advantage in the productive activity.
• C) can complete the productive activity most rapidly.
• D) least enjoy performing the productive activity.

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Definitions:

Mirror Image Rule

A principle in contract law stating that an offer must be accepted exactly with no modifications for a valid contract to be formed.

Offeror

The party making the offer.

Accepted

Acknowledged or agreed upon; typically refers to an agreement or proposal that has been agreed to by all parties involved.

Mailbox Rule

A rule providing that an acceptance of an offer takes effect at the time it is communicated via the mode expressly or impliedly authorized by the offeror, rather than at the time it is actually received by the offeror. If acceptance is to be by mail, for example, it becomes effective the moment it is placed in the mailbox.