The small-country monopolist's free-trade equilibrium occurs:
a. where MC = MR, where MR is declining and below price.
b. at the "world" price, which becomes a perfectly elastic demand curve for the monopoly firm and the firm's marginal cost curve.
c. where the home demand is completely satisfied by foreign importers.
d. at minimum marginal cost.
Ans: b. at the "world" price, which becomes a perfectly elastic demand curve for the monopoly firm and the firm's marginal cost curve.
You might also like to view...
People cope with uncertainty about the future:
A. in very similar ways, regardless of the situation. B. in many ways, such as buying insurance. C. exactly the same way, regardless of the situation. D. by always avoiding it.
Which of the following is true?
A. Long-term bond yields move together but short-term yields do not. B. U.S. Treasury Bill yields are lower than the yields on commercial paper. C. Long-term bond yields are usually the same as short-term yields. D. Short-term bond yields move together but long-term yields do not.
In recent years, the demand for orange juice in the United States has fallen and the supply of orange juice has also fallen, with the decrease in supply being larger than the decrease in demand. In this situation, the equilibrium price of orange juice
will have ________ and the equilibrium quantity of orange juice will have ________. A) decreased; increased B) decreased; decreased C) increased; decreased D) increased; increased
The total market value of all goods and services produced by factors of production within a nation is called
A. gross domestic income. B. value added. C. gross output. D. gross domestic product.