Absolute Advantage Is Determined by

question 49

Multiple Choice

Absolute advantage is determined by

• A)actual differences in labor productivity between countries.
• B)relative differences in labor productivity between countries.
• C)Both A and B.
• D)Neither A nor B.

Comprehend the relationship between the scale of production and long-run average cost curve shapes.

Understand the impact of scale changes on total, average, and marginal costs.

Recognize conditions for long-run equilibrium in constant cost industries.

Analyze the implications of long-run average cost curves on industry structure and firm size.