Monopolistic firms that practice international dumping:
a. suffer losses on their sales in foreign markets.
b. suffer losses on their sales in domestic markets.
c. maximize their monopoly profits.
d. are subject to antidumping taxes in their home countries.
Ans: c. maximize their monopoly profits.
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Belize, a country in Central America, has a small coffee industry. Suppose Belize does not have free trade but it has comparative advantage in coffee production. If Belize allowed international trade, what would be the gains from trade?
A) Belize coffee producers would gain from trade. B) Belize coffee consumers would gain from trade. C) Belize would gain tariff revenue from trade. D) All of these answers are gains from trade.
The requirement that certain professionals possess a license in order to work in a particular market has the effect of reducing the supply of those services, which in turn causes:
A) price and the profits of firms in the market to increase. B) price and the profits of firms in the market to decrease. C) price to increase and the profits of firms in the market to decrease. D) price to decrease and the profits of firms in the market to increase.
The interest rate charged on a Eurodollar loan will be:
a. higher than the interest rate charged on a U.S. loan. b. lower than the interest rate charged on a U.S. deposit. c. essentially equal to the interest rate charged on a Eurodollar deposit. d. lower than the London interbank offer rate. e. lower than the interest rate charged on a U.S. loan.
Total profit of a competitive firm can be found by multiplying profit per unit times units sold
a. True b. False Indicate whether the statement is true or false