Refer to Figure 14-2. If the government delays Gigacom's entry and Xenophone moves first, what is the likely outcome in the market?
A) Xenophone offers internet service via cable line and earns a profit of $4 million while Gigacom offers DSL internet service and earns a profit of $4.5 million.
B) Both offer internet service via cable line; Xenophone earns a profit of $6 million and Gigacom earns a profit of $9 million.
C) Both offer DSL internet service; Xenophone earns a profit of $8 million and Gigacom earns a profit of $7 million.
D) Xenophone offers DSL internet service and earns a profit of $5 million while Gigacom offer internet service via cable line and earns a profit of $6.5 million.
C
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Hector voluntarily left his job to search for a job in accounting, the field in which he has his bachelor's degree. Hector is considered
A) frictionally unemployed. B) not to be unemployed. C) structurally unemployed. D) cyclically unemployed.
A competitive equilibrium is Pareto optimal if there is no way to rearrange or to reallocate goods so that
A) anyone can be made better off. B) no one can be made worse off. C) someone can be made better off without making someone else worse off. D) someone can be made better off without making everyone else worse off.
If View Your World, a high-end window manufacturer, directly pays all of the transaction costs, the total cost to produce its windows includes all of the following except which one?
A) the cost of producing the windows B) the cost of transporting the inputs to make the windows to the plants C) the cost of transporting the product to its customers D) the cost to add another production plant
The concepts of comparative advantage, specialization, and trade form a compelling argument in favor of:
A. free trade. B. protectionism. C. self-sufficiency. D. only exporting goods and not importing goods.