In the long run, each firm in a perfectly competitive market earns zero economic profit.
Answer the following statement true (T) or false (F)
True
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If Japan has an absolute advantage over the United States in making TVs, then Japan:
A. probably sells TVs to the United States. B. produces more TVs than the United States using the same resources. C. has the ability to produce TVs at a lower opportunity cost than the United States. D. it will have no reason to trade with the US.
In the orange market, what impact would an increase in the price of oil that orange growers burn to keep oranges from freezing in the winter have on the market?
a. It would shift the supply curve to the right. b. It would shift the supply curve to the left. c. It would shift the demand curve to the left. d. It would shift the demand curve to the right.
Suppose a gardener produces both tomatoes and squash in his garden. If he must give up 8 bushels of squash to get 5 bushels of tomatoes, then his opportunity cost of 1 bushel of tomatoes is
a. 0.63 bushels of squash. b. 1.6 bushels of squash. c. 3 bushels of squash. d. 5 bushels of squash.
All of the following are reasons for an oligopoly to occur EXCEPT
A. independence among firms. B. merger. C. barriers to entry. D. economies to scale.