Assume the Data Backup Industry,a Perfectly Competitive Industry,is in Long-Run

question 35

Multiple Choice

Assume the data backup industry,a perfectly competitive industry,is in long-run equilibrium with a market price of $3 per 10GB.If demand for data backup decreases and this industry is a decreasing-cost industry,long-run equilibrium will be reestablished at a price

• A) greater than $3.
• B) less than $3.
• C) equal to $3.
• D) either greater than or less than $3, depending on the number of firms that enter the industry.

Distinguish between the roles of comparative advantage and absolute advantage in international specialization and trade.

Recognize the contributions of key economists to the theory of comparative advantage.

Evaluate the impact of specialization and trade on the production possibilities of countries.

Understand the concept and importance of homeostasis in regulating body conditions.

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Definitions:

Marginal Revenue

Additional earnings derived from the sale of an extra unit of a product or service.

Marginal Cost

The additional expense incurred when one more unit of a product or service is created.

Average Total Cost

The total cost divided by the quantity of output produced, representing the per-unit cost of production.