Monopolists may be able to earn profit, even in the long run, as the result of
a. consumer ignorance.
b. an inelastic demand for its product.
c. product differentiation.
d. high barriers to entry.
D
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Refer to Table 5.2. This table shows the number of labor hours required to produce a bicycle and a harmonica in Germany and Sweden
a. Which country has an absolute advantage in the production of bicycles? b. Which country has an absolute advantage in the production of harmonicas? c. What is Germany's opportunity cost of producing one bicycle? d. What is Sweden's opportunity cost of producing one bicycle? e. What is Germany's opportunity cost of producing one harmonica? f. What is Sweden's opportunity cost of producing one harmonica? g. If each country specializes in the production of the product in which it has a comparative advantage, who should produce bicycles? h. If each country specializes in the production of the product in which it has a comparative advantage, who should produce harmonicas?
What is the shape of a monopolist's demand curve and marginal revenue curve?
What will be an ideal response?
The theory of comparative advantage shows that the gains from international trade result from producing: a. at a lower opportunity cost. b. at a lower absolute cost
c. a labor-intensive good. d. a capital-intensive good.
The tasks performed by the chef at your favorite restaurant could be categorized as
A. an economic good. B. a good. C. a service or intangible good. D. All of these are correct.