Purchasing-power parity theory does not hold at all times because
a. many goods are not easily transported.
b. the same goods produced in different countries may be imperfect substitutes for each other.
c. Both a and b are correct.
d. prices are different across countries.
c
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Explain the differences between patents and copyrights
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A single-price monopoly has marginal revenue and marginal cost equal to $19 at 15 units of output where the price on the demand curve is $38. At this output, average total cost is $15. What is the total profit earned?
A) $225 B) $285 C) $345 D) $570 E) $19
A socially optimal price:
A) maximizes consumer surplus and minimizes producer surplus. B) maximizes producer surplus and minimizes consumer surplus. C) maximizes total surplus. D) maximizes deadweight loss.
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?
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