Which of the following about trade is true?
What will be an ideal response?
Specialization and trade leads to mutual gains for countries.
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If the market price is $40, the average revenue of selling five units is
A) $8. B) $20. C) $40. D) $200.
If the percentage increase in the quantity supplied is greater than the percentage increase in the price, the supply:
A. is perfectly elastic. B. is elastic. C. is inelastic. D. is unit elastic.
To be able to engage in profit-maximizing price searching, a monopoly firm must be able to
A) prevent the entry of other firms into the market for its product. B) induce the entry of other firms into the market for its product. C) avoid earning negative economic profits in the short run. D) always earn zero economic profits.
If a firm shuts down in the short run
A. it will lose its operating costs. B. it will incur only its explicit costs. C. its losses will be equal to zero. D. it will incur its fixed costs.