What is a seller's opportunity cost?
A seller's opportunity cost is the dollar value of the best alternative he forgoes when he parts with the object. It is the lowest dollar value that the seller will accept for parting with his good.
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A buyer is said to be a price taker if she:
A) can bargain over the prices of the goods she consumes. B) can purchase any amount of a good at a fixed price provided she has the money to pay for it. C) always pays less than the market-determined price for the goods she is consuming. D) ignores the prices of related goods and considers only the price of the goods she is purchasing.
Suppose two nations are seeking to expand their commercial relations. What options do they have in terms of addressing conflicts in standards? Describe each and what conditions might favor different approaches to setting standards
What will be an ideal response?
International trade based on external scale economies in both countries is likely to be carried out by
A) a relatively large number of price competing firms. B) a relatively small number of price competing firms. C) a relatively small number of imperfect competitors. D) monopolists in each country. E) a large number of oligopolists in each country.
By refusing to be time inconsistent, a central bank is ________ its reputation and ________ "policy credibility."
A) harming, losing B) harming, gaining C) investing in, losing D) investing in, gaining