Use the following table for Country X to answer the next question. Column 1 of the table is the world price of a product. Column 2 is the quantity demanded domestically (Qdd), and Column 3 is the quantity supplied domestically (Qsd).PriceQddQsd$5.002004004.002503503.003003002.003502501.00400200If Country X opens itself up to international trade, at what world price will it begin exporting some units of the product? Assume the small-country model is applicable.
A. Any price above $1.00
B. Any price below $1.00
C. Any price above $3.00
D. Any price below $3.00
Answer: C
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The schedules in the table give the marginal social benefit and marginal social cost of a DVD. At the efficient quantity, the minimum supply-price of a DVD is ________ and the value of a DVD is ________
A) $16; $24 B) $16; $20 C) $20; $16 D) $20; $20
Suppose that the adult population in the country of Atlantis is 115 million. If 80 million people are employed and 5 million are unemployed, then
a. 30 million are not in the labor force. b. 35 million are in the labor force. c. 75 million are in the labor force. d. 35 million are not in the labor force.
Suppose that the U.S. imposed an import quota on beef. Sales of U.S. beef producers would
a. rise and exports of other industries would increase. b. rise and exports of other industries would decrease. c. not change, exports of other industries would increase. d. not change, exports of other industries would decrease.
Alyssa runs a "Dessert of the month" delivery service. To operate her business each year, she spends $30,000 on baking supplies (flour, sugar, etc.), $50,000 on rent for her shop, and $5,000 for utilities. She owns her delivery van, estimating that in alternate uses it could generate $15,000 in income per year. Alyssa has other funds tied up in the business that could earn her $2,000 per year in interest. Alyssa has been offered $50,000 to work full time at a competing bakery. Her bakery generates $160,000 per year in revenue from subscriptions to her monthly service.Based on the information above, which of the following can we conclude about Alyssa's business?
A. Alyssa would be better off working for the competing bakery. B. Alyssa's economic profits are greater than her accounting profits. C. Alyssa is earning economic profits, so we would expect her to remain in business. D. Alyssa is incurring economic losses, so we would expect her to close her business.