The Table Below Shows the Quantity Demanded (In Thousands) and Quantity

question 49

True/False

The table below shows the quantity demanded (in thousands) and quantity supplied (in thousands) of computers in the U.S. and Canada at different prices.Table 20.5

-Though the countries can benefit by completely specializing in the production of the good in which they have comparative advantage, in real world however, they do not completely specialize.

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Definitions:

Cost Function

A mathematical relationship that describes how the costs incurred by a firm vary with the level of output or activity.

Output

Refers to the quantity of products or services produced by a business, industry, or economy.

Marginal Cost

The increase in total cost that arises from an increase in production by one additional unit.

Average Variable Cost

The total variable cost of production divided by the quantity of output produced, representing the average cost of each unit of output when only variable costs are considered.