If Both Natasha and Jameson Produce the Good for Which

question 10

Multiple Choice

If both Natasha and Jameson produce the good for which each has a comparative advantage,total output of this economy will be

• A) 10,000 pounds of cheese.
• B) 30 houses.
• C) 10,000 pounds of cheese and 30 houses.
• D) 5,000 pounds of cheese.
• E) 5,000 pounds of cheese and 20 houses.

---

Definitions:

Marginal Cost

The cost incurred from producing one additional unit of a product or service.

Output

The amount of goods or services produced by a business, industry, or economy.

Oligopolistic

Pertaining to an oligopoly, describing a market dominated by a small number of firms, leading to strategic behaviors among them.

Gas Stations

Facilities that sell fuel and engine lubricants for motor vehicles. Some may also offer convenience store goods and car wash services.