Describe the situation in the market for a good or service that the United States exports
What will be an ideal response?
The goods and services the United States will export are those in which the United States has a lower opportunity cost of production relative to other countries. In those markets the U.S. no-trade price is lower than the world price. With trade the quantity produced in the United States exceeds the quantity consumed and the excess is exported.
You might also like to view...
The Lerner Index is a measure of market power that focuses on:
A) the ratio of the price of a firm's product to the price elasticity of demand for the product. B) the share of the market controlled by the X largest firms in the market. C) the sum of the squares of the market share of each firm in an industry. D) the difference between a firm's product price and its marginal costs of production.
A perfectly competitive firm sells 15 units of output at the going market price of $10. Suppose its average fixed cost is $15 and its average variable cost is $8. Its contribution margin (i.e., contribution to fixed cost) is
A) $30. B) $150. C) $105. D) Cannot be determined from the above information
Capital accounts measure
a. the foreign asset holdings of a nation and that nation's asset holding abroad b. d and e c. changes in the foreign asset holdings of a nation and the difference between its exports and imports d. the difference between a nation's exports and imports e. changes in the foreign asset holdings of a nation and that nation's asset holdings abroad
At price of $1.30 per pound, a local apple orchard is willing to supply 150 pounds of apples per day. At a price of $1.50 per pound, the orchard is willing to supply 170 pounds of apples per day. Using the midpoint method, the price elasticity of supply is about
a. 1.14. b. 1.00. c. 0.875. d. 0.50.