Refer to the information provided in Table 20.3 below to answer the question(s) that follow. Table 20.3
Refer to Table 20.3. If the exchange rate is $1 = 2 euros, then
A. the United States will import raspberries and Belgium will import chocolate.
B. Belgium will import both raspberries and chocolate.
C. the United States will import both raspberries and chocolate.
D. Belgium will import chocolate.
Answer: A
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There are five firms in the cresset industry. The market shares of the five firms are 60 percent, 15 percent, 15 percent, 6 percent, and 4 percent. The Herfindahl index is
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When demand is inelastic, an increase in price will cause
a. an increase in total revenue. b. a decrease in total revenue. c. no change in total revenue but an increase in quantity demanded. d. no change in total revenue but a decrease in quantity demanded.
If a perfectly competitive firm experiences a permanent increase in demand, profits will become negative in the short run, and in the long run adjustment some firms would exit from the market, causing the supply curve to shift inwards
Indicate whether the statement is true or false