Cost? The cost in dollars to produce ?x? DVDs can be approximated by Find the marginal cost when the following quantities are made. a.? 0 b.? 20 c.? What happens to the marginal cost as the number produced becomes larger and larger?
COMPARATIVE ADVANTAGE ● economic systems based on specialization and the exchange of goods and services are generally far more productive than those with with little specialization ● production possibilities curve = graphical method of describing the combinations of goods and services that an economy can produce ● absolute advantage = if a person takes fewer hours to perform a task than the other person ● comparative advantage = if a person’s opportunity cost of performing a task is lower than the other person’s opportunity cost ● when two people (or two nations) have different opportunity costs of performing various tasks, they can always increase the total value of available goods and services by trading with each other Th