As the number of firms in a market increases, the supply curve will shift to the left and the equilibrium price will rise
Indicate whether the statement is true or false
FALSE
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Two nations, Alpha and Beta, can both produce steel. Alpha has a comparative advantage in the production of steel if it
A. has a higher domestic opportunity cost of producing steel than Beta. B. uses more steel than Beta. C. can produce more steel than Beta. D. has a lower domestic opportunity cost of producing steel than Beta.
Firms in monopolistic competition make products that are
A) perfect complements. B) close but not perfect complements. C) perfect substitutes. D) close but not perfect substitutes.
It is better to pool risks because you can:
A. increase your income. B. reduce your expected income but increase its standard deviation. C. increase your expected income. D. reduce the variability of expected income.
If a small country imposes a tariff on imported motorcycles, the world price of motorcycles will ________ and the domestic price of motorcycles will
A. remain constant; fall. B. fall; rise. C. rise; fall. D. remain constant; rise.