As the price of a good rises:
A. firms generally decrease the supply of the good.
B. government regulation becomes more justified.
C. firms generally increase the supply of the good.
D. more firms can cover their opportunity cost of producing the good.
Answer: D
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For a monopoly producing any output level greater than one, the average revenue curve:
A. is the same as the demand curve. B. lies about the demand curve. C. lies below the demand curve. D. can be negative.
The opportunity costs of different policies must be weighed to solve which of the following obstacles?
A. Measurement problems. B. Implementation problems. C. Rational expectations problems. D. Goal conflicts.
Refer to the above figure. The firm is currently producing at Q1. The firm should
A. increase production. B. reduce production. C. shut down. D. leave production as it is.
According to the Heckscher-Ohlin model
A) the gainers from trade could compensate the losers and still retain gains. B) everyone gains from trade. C) the scarce factor gains from trade and the abundant factor loses. D) a country gains from trade if its exports have a high value added. E) only the country with the more advanced technology gains from trade.