The Figure Above Shows a Firm's Total Product Curve

question 10

Multiple Choice

The figure above shows a firm's total product curve.
-Which of the points show efficient production points?

• A) all points above the TP curve
• B) all points on the TP curve
• C) all the darkened points below the TP curve
• D) all the points above and on the TP curve
• E) all the darkened points below and on the TP curve

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Definitions:

Comparative Advantage

A theory that suggests a country should specialize in producing and exporting goods and services for which it has the lowest opportunity cost.

Resources

Land, labor, capital, and entrepreneurial ability used to produce goods and services.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors, leading to specialized production and trade.

Absolute Advantage

A situation in which a country, individual, or company can produce a good at a lower cost per unit than competitors.