As imports rose in 13 major industries studied by Shepherd, these U.S. producers, finding themselves at a cost and quality disadvantage relative to imported goods, initially responded by
a. improving technology
b. exiting the industry
c. seeking trade barriers
d. asking that quotas and tariffs be removed
e. raising prices to recoup their losses
C
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Refer to Table 11-2. Calculate the GDP per capita for each country in the table. Which country has the highest standard of living? Why?
What will be an ideal response?
If a consumer prefers apples to bananas and prefers bananas to citrus fruit, in order to satisfy assumptions about preferences she has to prefer
A) bananas to apples. B) citrus fruit to bananas. C) apples to citrus fruit. D) citrus fruit to apples.
Identify the market structure characterized by many small firms selling somewhat different products
a. Monopoly b. Monopolistic competition c. Perfect competition d. Duopoly
Which of the following occur in the long-run equilibrium for the firm and the industry under perfect competition?
a. Firms produce output where price equals marginal cost, which also corresponds to where marginal cost intersects long-run average cost. b. Firms produce output where total revenue is maximized. c. Firms earn positive economic profits. d. Firms produce output where price equals average fixed cost, which also corresponds to where marginal revenue intersects marginal cost.