The main reason why one nation trades with another is to
a. save its natural resources from rapid depletion.
b. exploit the advantages of specialization.
c. eliminate the danger of retaliation from other nations.
d. improve political alliances.
b
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Refer to the table below. If this market is a Cournot Oligopoly and Firm X is produces 50 units, what is Firm Y's marginal revenue at a price of $60?
The table above shows the market demand for a product that both Firm X and Firm Y manufacture. Both firms produce an identical product and the firms' average total and marginal cost are equal and constant.
A) $40 B) $60 C) $70 D) $50
A decrease in productivity will shift
A. aggregate supply to the right. B. aggregate supply to the left. C. aggregate demand to the left. D. aggregate demand to the right.
A firm is most likely to experience economies of scale if its start-up costs are high and its marginal cost is ________.
A. high B. low C. decreasing D. increasing
If the supply curve for housing is perfectly inelastic, a reduction in demand will cause the equilibrium price to: a. rise and the equilibrium quantity to fall
b. rise and the equilibrium quantity to stay the same. c. fall and the equilibrium quantity to fall. d. fall and the equilibrium quantity to stay the same.