In the classical model, the direction of trade is determined by
A) comparative advantage.
B) absolute advantage.
C) physical advantage.
D) which way the wind blows.
B
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Refer to Monopoly Supplier and Manufacturer. After the merger, the leather company will earn surplus of
The following questions refer to the accompanying diagram, which shows a monopoly leather supplier selling leather to a monopoly shoe manufacturer. The leather supplier initially produces QM and charges the shoe manufacturer PM. Then the leather supplier acquires the shoe manufacturer in a vertical merger.
a. Area A + B.
b. Area A + B + C + D + E.
c. Area F + G + H.
d. Area A + B + C + D + E + F + G + H.
What is Supplemental Security Income?
What will be an ideal response?
The impact of _____ unemployment is removed from official monthly unemployment figures
a. cyclical b. structural c. seasonal d. frictional e. involuntary
Critics of advertising argue that in some markets advertising may
a. attract products of lower quality into the market. b. attract less informed buyers into the market. c. decrease elasticity of demand allowing firms to charge a larger markup over marginal cost. d. enhance competition in markets to an unnecessary degree.