Detroit's Comparative Advantage in Terms of Automobile Production Included All

question 43

Multiple Choice

Detroit's comparative advantage in terms of automobile production included all of the following EXCEPT

• A) it was Henry Ford's hometown.
• B) it was previous center of the wagon and buggy industry.
• C) it was close to numerous parts-producing firms.
• D) it was close to Akron, a major rubber center.
• E) it was at the nexus of numerous transportation routes and networks.

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Definitions:

Competitive Labor Market

A market where employers compete to hire the best, and workers compete for the best satisfying job, with wage rates determined by supply and demand.

Total Product Curve

A curve that shows the relationship between the quantity of inputs used in production and the total quantity of output produced.

Marginal Revenue Product

The additional revenue produced from using one more unit of an input.

Marginal Labor Cost

The additional cost incurred by hiring one more unit of labor.