To draw the consumption possibilities curve for a particular nation you need to know the output of the good for which the nation has a comparative advantage and the terms of trade
Indicate whether the statement is true or false
TRUE
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A perfectly competitive firm will continue to operate in the short run when the market price is below its average total cost if the
A) marginal revenue is greater than marginal cost. B) price is at least equal to the minimum average variable cost. C) total fixed costs are less than total revenue. D) marginal cost is minimized. E) price is also less than the minimum average variable cost.
Using the table above, if the current market value of the dollar is 125 francs
A) investor A holds dollars, but B and C hold francs. B) investor A holds francs, but B and C hold dollars. C) all three investors hold francs. D) all three investors hold dollars.
Public goods are those for which
A) individuals who do not pay can be excluded from consuming the good. B) individuals who do not pay cannot be excluded from consuming the good. C) external costs exist. D) no external costs exist.
For an incumbent, investing in plant and equipment that reduces marginal cost while raising total cost makes sense if
A) the incumbent's profit fro, producing the entry-deterring level of output after making the investment exceeds the profit the firm would earn if it didn't make the investment and entry occurred B) the incumbent's profit from producing the entry-deterring level of output after making the investment is positive C) the potential entrant cannot enter the market profitably after the incumbent makes the investment and produces the entry-deterring level of output D) the potential entrant would not enter the market anyway