When There Are Two People and Each Is Capable of Producing

question 173

True/False

When there are two people and each is capable of producing two goods, it is possible for one person to have a comparative advantage over the other in both goods.

---

Definitions:

Economic Profits

The difference between total revenue and total costs, including both explicit and implicit costs.

Accounting Profits

The total revenue of a business minus the explicit costs and depreciation expenses; it's a measure of a company's financial performance according to standard accounting principles.

Most Efficient Output

Refers to the highest amount of goods or services that can be produced with a given set of resources and technology without wasting any resources.

Computerization

The process of applying computer technology and systems to automate tasks, processes, and operations, transforming how work is done, data is managed, and information is shared.