When the two-good production and trade models are extended from a given country to the entire world
A. the price of both goods rises for the country going global.
B. the cost of producing the exported good rises for the country going global.
C. the price of the imported good falls to the country's consumers.
D. the price of the exported good falls for the country going global.
Answer: C
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If, in a perfectly competitive industry, the market price facing a firm is above its average total cost at the output where marginal revenue equals marginal cost, then
A) new firms are attracted to the industry. B) existing firms will exit the industry. C) market supply will remain constant. D) firms are breaking even.
Refer to the table. The equilibrium dollar price of luta is:
Answer the question on the basis of the following table, which indicates the dollar price of luta, the currency used in the hypothetical economy of Luteland:
A. $10.
B. $8.
C. $6.
D. $2.
If a city decides to lift restrictions on how many taxi cabs can operate, social welfare will increase
Indicate whether the statement is true or false
In the above figure, this profit-maximizing monopolistic competitive firm will realize an economic profit of
A) -$1,400. B) $2,100. C) $1,400. D) $700.