Takes the lowest cost into consideration
takes the opportunity
cost into consideration
China produces rice at
the lowest cost than any
other country
United States manufactures
machines at a much lesser
opportunity cost than other
countries.
United States imports electronics
even though it has the capability
of manufacturing themmore
efficientlythan China.
Absolute Advantage Policy
Comparative Advantage Policy

Because this market is a monopolistically competitive market, you can tell that it is in long-run equilibrium by the fact thatmr=mc at the optimal quantity for each firm. furthermore, a monopolistically competitive firm's average total cost in long-run equilibrium isless than the minimum average total cost. true or false: this indicates that there is a markup on marginal cost in the market for engines. true false monopolistic competition may also be socially inefficient because there are too many or too few firms in the market. the presence of the externality implies that there is too little entry of new firms in the market.