Answer:
The correct answer is: The price of fertilizer must be less than average total cost.
Explanation:
In a perfectly competitive labor market, the firm is price takers. These firms are able to maximize their profit at the point where the price is equal to marginal revenue.
If the firm is incurring losses and still operating, it means that the price is higher than the average variable cost but lower than the average total cost.
If the price was lower than the average variable cost, the firm would have stopped production. A price equal to the average variable cost implies zero economic profit. When the price is greater than the average total cost the firm is earning profits.
I believe private property rights are e) the rights individuals but not firms have to the exclusive use of tangible, physical property and intellectual property.
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Answer
Shifts PPC to the right-A new technology is invented to produce more food grains in the country.
point on original PPC- the country is using all its resources efficiently.
shifts PPC to the left- many of the country's young people died in an earthquake
unattainable point- the country plans to produce with the available resources
Explanation
PPC -This is the short form of Production possibility curve. This is an indicator which shows the maximum production of two or more goods and services which can be achieved in the economy of a nation when the resources are well distributed and fully utilized in a productive manner. The causes of increment in output where the curve may shift to left or right or attainable point and even to the original PPC is due to the distraction of capital equipment in the country.This depends on how the country is using its resources.
If Natasha can produce either 5,000 pounds of cheese or 20 houses per year and Jameson can produce either 5,000 pounds of cheese or 10 houses per year then,
- Natasha has a comparative advantage in the production of cheese.
- Jameson has a comparative advantage in the production of cheese.
<h3>What is comparative advantage?</h3>
The ability of an economy to produce a specific good or service at a lower opportunity cost than its trading counterparts is known as comparative advantage.
The example of comparative advantage is-
- For instance, if a nation excels in producing both cheese and chocolate, they can choose to allocate the appropriate amount of labour to each product.
- This nation has a comparative advantage in producing chocolate if it takes one hour of labour to make 10 units of cheese and one hour of labour to produce 20 units of chocolate.
The importance of comparative advantage are-
- Ability to create a good or service for a lower opportunity cost is a benefit of comparative advantage.
- Companies with a comparative advantage are able to sell their products and services for less than their rivals do, resulting in higher profit margins and stronger sales margins.
To know more about lower opportunity cost, here
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