An industry is characterized by scale economies and exists in two countries. In order for consumers of its products to enjoy both lower prices and more variety of choice
A) the two countries must engage in international trade with each other.
B) each country's marginal cost must equal that of the other country.
C) the marginal cost of this industry must equal marginal revenue in the other.
D) the monopoly must lower prices in order to sell more.
E) they must combine to become a multinational corporation.
A
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The price elasticity of demand is usually equal to the slope of the demand curve
a. True b. False
When implementing monetary policy, the variable the Federal Reserve watches most closely is the
a. required reserve ratio b. federal funds rate c. long term bond rate d. national debt e. short term corporate bond rate
A graph with a positive slope indicates that the variables depicted on the axes move in the same directions
a. True b. False Indicate whether the statement is true or false
To maintain their standard of living, most people rely on
a. government assistance. b. their personal savings. c. their labor earnings. d. rental income.