A firm is more likely to engage in horizontal foreign direct investment if
A) trade costs are high and there are internal economies of scale.
B) trade costs are low and there are internal economies of scale.
C) trade costs are high and there are external economies of scale.
D) trade costs are low and there are external economies of scale.
E) trade costs are low and firms experience constant returns to scale in production.
A
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In the income-expenditure model, firms stand ready to provide all the output that is demanded
Indicate whether the statement is true or false
The quantity supplied of a good or service is the quantity that a producer ________ at a particular price during a given time period
A) is willing to sell B) actually sells C) needs to sell D) should sell
The opportunity cost of a hot dog in terms of hamburgers is the
A) ratio of the slope of the demand curve for hot dogs to the slope of the demand curve for hamburgers. B) ratio of the slope of the supply curve for hot dogs to the slope of the supply curve for hamburgers. C) money price of a hot dog minus the money price of a hamburger. D) ratio of the money price of a hot dog to the money price of a hamburger.
In economics, the planning horizon is defined as
A. the long run, during which all inputs are variable. B. the period of time for which technology is fixed. C. the shortest time period over which the firm can make decisions. D. the immediate future, such as the next day that any action can be taken.