Optimal decisions are made in the marketplace. if information about prices and m

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Optimal decisions are made in the marketplace. if information about prices and marginal utilities is known. when marginal utility it minimized at the margin. If Japanese workers arc more productive the French workers, then trade between Japan and France can take place only if France hat an absolute advantage in producing a good or service Japanese buyers want. cannot lake place because Japanese goods and sets sees will be less expensive than French goods and services. cannot take place until French workers become mere productive. will take place so long as each country has a comparative advantage in a good or service that buyers in the ocher country want. According to the Department of Agriculture, net farm income will grow to a record high of $1.20.6 billion in 2013 up from the previous high mark in 2011 and after adjusting for inflation, its second highest level since 1973, Net cash income, however, is expected to full by 10 percent due to unsold inventories. Exports of chickens and milki are expected to rise by 3 percent and 17 percent, respectively-Source: Ros Krasny, "Farm income poised for record 2013: USDA," Reuters, August 27, 2013. Refer to the Article Summary. All else equal, the increase in demand for chicken and milk exports will the market price for these exports and economic profit in these markets. increase; decrease decrease; increase increase; increase decrease; increase decrease; decrease Marginal utility can be negative. zero. positive positive, negative or zero. Maximizing the level of output foe a given total cost of production is equivalent to producing the profit maximizing output level. is equivalent to minimizing cost for a given level of output. necessitates using only relatively low-priced inputs.

Explanation / Answer

1.

optimal decisions are made

if information about prices and utilities are known

this helps to weigh returns versus risk

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