B: Who has the absolute advantage for each product? Why?
Japan can produce 100 CD's while the U.S. Can only produce 90 CD's. In the aspect of DVD
production, Japan can produce 50 DVD's while the U.S. Can only produce 30. Therefore, Japan
1. Normally, whenever a new video game console comes out, there is a shortage all over the
United States. Graphically illustrate and fully explain where the shortage comes from, how the
various roles of prices can come together to end the shortage, and wh
2. Is the relationship between the price of starfish and the quantity demanded inverse or direct? The
relationship between the price of starfish and the quantity demanded is inverse, because as the
aunt its of starfish goes up the price goes down.
1. Explain how marginal costs, direct costs, and opportunity costs are dierent. Use an example
from your personal life to illustrate each concept.
Marginal costs are simply the additional costs derived from any action. My family participates in an