If the Opportunity Cost of Producing a T-Shirt Is ________

question 199

Multiple Choice

If the opportunity cost of producing a T-shirt is ________ in China than in the United States,China has ________ advantage in producing T-shirts.

• A) lower; a comparative
• B) lower; an absolute
• C) higher; a comparative
• D) higher; an absolute
• E) higher; no

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Definitions:

Marginal Revenue

The additional revenue that a company receives from selling one more unit of a good or service.

Downward-Sloping Demand

A common economic principle where the quantity demanded of a good or service decreases as its price increases.

Quantity Tax

A tax that is levied on the quantity of a good produced or sold, rather than its price.

Marginal Cost

The rise in overall expenses resulting from the production of an extra unit of a product or service.