How are the domestic sellers and buyers of a good affected if a country starts importing the good?
What will be an ideal response?
If a country starts importing the good, buyers can buy the good at a lower price than the domestic price. Therefore, buyers gain. On the other hand, sellers face competition because of a lower world price, which reduces the quantity they can sell. Therefore, sellers lose.
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Indicate whether the statement is true or false
What is the marginal rate of substitution and how does it relate to an indifference curve?
What will be an ideal response?
Assume the market shares of the six largest firms in an industry are 15 percent each. The six-firm concentration ratio would indicate that the industry is highly concentrated, while the Herfindahl- Hirschman Index would not
Indicate whether the statement is true or false
Which of the following equations represents consumer equilibrium?
a. MU1/P1 = MU2/P2 b. MU1/P2 = MU2/P1 c. P1/MU1 = P2/MU2 d. P1/MU2 = P2/MU1