If two men are producing the same good, but one of them is producing more, with the same constraints, then he has an absolute advantage.
<h3>What is Absolute Advantage?</h3>
This refers to the economic principle which means that one particular entity is able to manufacture a greater quantity of goods in a more efficient manner than their competitors.
Please note that your question is incomplete so I gave you a general description to help you better understand the concept.
Some of the factors that can affect absolute advantage are:
- Cheaper materials
- Less time used to produce the good
- Cheaper labor, etc
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Explanation:
Every year's investment on the physical capital may decrease the profit rate of the company though it is true that the fast computers and technological items can improve the productivity of the workers.
Every year investment is not required for the employees from company's point of view as they think it is over expending on the products which are not necessary and relevant.
Answer:
decrease and demand curve will shift to the left.
Explanation:
When new firms enter a monopolistically competitive market, the economic profits of existing firms will decrease. This is because, new firms enter an existing market if they spot a profit opportunity . The entry of these new firms will therefore increase the quantity of products or services supplied in the market which gives consumers more choices and substitutes. As a result, the demand curve of the existing firms will also shift to the left. because their
Answer:
diminishing returns,
Explanation:
The law of diminishing marginal returns claims that the returns from the input will first increase at an increasing rate until production reaches an optimal level. After the optimal level, and holding the other factors constant, the returns from the output will start diminishing and eventually turn negative.
Diminishing returns concepts apply in the short term, where only variable inputs can change. For example, in a factory setting, the optimal production capacity is fixed in the short-run. Additional usage of a variable such as labor increase returns until the factor reaches its optimal capital. Additional hiring of labor results in diminishing returns in labor output.
Answer:
The solution according to the given query is provided below.
Explanation:
The given question seems to be incomplete. The attachment of the complete query is provided below.
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The additional investment will be:
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The drawings will be:
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By putting the values, we get
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