If Estonia has an absolute advantage in the production of two goods compared to Norway, Estonia can not benefit from trade with Norway
Indicate whether the statement is true or false
FALSE
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If a profit-maximizing firm finds that price exceeds average variable cost and marginal cost is greater than marginal revenue, it should: a. reduce output, but continue producing in the short run. b. increase output
c. shut down. d. not alter its production level since it is earning a profit.
The market price for Chinese televisions recently changed from $200 per television set to $150 . _____, will benefit the most from this change in price
a. Lee Gadgets Co., a retail shop that sells Chinese televisions to consumers b. Wayne Inc., a manufacturer of Chinese televisions c. Harry, a consumer who buys a Chinese television set d. Light Inc., a wholesaler who sells Chinese televisions to retailers
Increasing returns to scale occurs when a firm's:
a. average costs of production increase as its output increases. b. average costs of production decrease as its output increases. c. average fixed costs increase as its output increases. d. marginal costs increase as its output increases.
Briefly explain the difference between idiosyncratic risk and systematic risk. Provide an example of each.
What will be an ideal response?