If a country produces a commodity in the range of decreasing returns to scale, and the country begins to export more in a pure free trade system, the domestic price of the commodity will
a. fall.
b. rise.
c. exceed the price in foreign countries.
d. be below the price in foreign countries.
e. One cannot predict the impact on the price of the commodity.
b
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The primary purpose of economics is to understand how people make
A) money. B) goods and services. C) choices. D) a comfortable living.
Suppose quantity demanded is 2,000 when price is $10 and 3,000 when price is $5. If a monopolist who was initially charging a price of $10 discovers a way to price-discriminate, it will be able to increase revenue from $20,000 to:
A. $25,000 by charging consumers with less elastic demands only $5 and keeping the price for consumers with more elastic demands at $10. B. $35,000 by charging consumers with less elastic demands only $5 and keeping the price for consumers with more elastic demands at $10. C. $35,000 by charging consumers with more elastic demands only $5 and keeping the price for consumers with less elastic demands at $10. D. $25,000 by charging consumers with more elastic demands only $5 and keeping the price for consumers with less elastic demands at $10.
How does a "rules-based" approach to monetary policy differ from "discretionary intervention"?
What will be an ideal response?
Refer to the information provided in Table 13.1 below to answer the question(s) that follow. Table 13.1Price ($)Quantity4.002,0003.502,4003.002,8002.503,2002.003,6001.504,0001.004,400Refer to Table 13.1. If a monopoly faces the demand schedule given in the table and has a constant marginal and average cost of $1 per unit of providing the product, what is the level of output that would maximize its profits?
A. 2,000 B. 2,400 C. 2,800 D. 3,200