The theory of comparative advantage suggests that a (an):
a. country that is not competitive should import everything.
b. country specialize in producing goods or services for which it has a lower opportunity cost.
c. None of the answers are correct.
d. industrialized country should not import.
b
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Which of the following is a characteristic of an oligopoly market?
a. Each firm in an oligopoly market can take independent pricing and output decisions. b. There are many firms in an oligopoly market hence a firm cannot influence the market price. c. In an oligopoly market, each firm's pricing and output decisions depend on those of its rivals. d. Firms in an oligopoly market always manufacture differentiated products. e. Barriers to entry does not exist in an oligopoly market.
In the long run, a monopolistic competitor's price will equal: a. marginal revenue
b. average total cost. c. marginal cost. d. minimum average total cost.
The NCAA rule governing the limits on the amount of a scholarship a college can offer an athlete is an effective price floor
Indicate whether the statement is true or false
If a firm in a monopolistically competitive market has a demand curve that is shifting to the right, it will only stop shifting when:
A. the firm's price is equal to its average total costs. B. the firm is earning zero economic profits. C. other firms have no incentive to leave the market. D. All of these statements are true.