According to the principle of comparative advantage, total output and consumption levels will be highest when goods are produced in nations according to which of the following conditions?
a. Opportunity costs are lowest. b. Absolute advantages are highest.
c. Opportunity costs are equal. d. Absolute advantages are lowest.
a
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Firms in monopolistic competition
A) face a downward-sloping demand curve. B) cannot charge a markup because there are no dominant firms. C) definitely do not benefit from advertising. D) produce at the efficient scale in the long run. E) generally have low to nonexistent selling costs.
Economists cite some beneficial effects of price discrimination. What are these benefits and how do the antitrust laws treat price discrimination?
When people trade goods for money, money is being used as a medium of exchange
a. True b. False Indicate whether the statement is true or false
Two bottles of body wash sit side-by-side in a grocery store: Olay (a brand name) sells for $6.00, while Up and Up (not a brand name) sells for $3.00 . Even defenders of brand names would have to admit that
a. no rational consumer would spend twice as much for Olay as she would for Up and Up. b. the side-by-side presence of these two body washes conveys no useful information to consumers. c. Olay has no incentive to maintain the quality of its product just because of the Olay brand name. d. None of the above is correct.