Adam Smith’s discussion of the production in a pin factory illustrates the law of comparative advantage.
Answer the following statement true (T) or false (F)
False
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What is marginal damage cost?
What will be an ideal response?
When a price floor is imposed above the equilibrium price of a commodity,
a. quantity demanded will be greater than quantity supplied for the good. b. the quantity demanded by consumers will be greater than at the equilibrium price. c. a shortage of the good will develop. d. a surplus of the good will develop.
According to Chamberlin, the fact that in the long run average total cost exceeds its minimum value under monopolistic competition is
A. part of the cost of producing different products for consumers. B. the social cost of monopolistic competition. C. actually beneficial because it makes adjustments easier when demand increases. D. the most important reason for why monopolistic competition is not efficient.
Answer the following questions true (T) or false (F)
1. Black markets only exist in developing nations. 2. Rent control is an example of a price ceiling. 3. Price ceilings are illegal in the United States.