Which of the following correctly identifies an impact of the opening of trade for an industry with external economies?
A. Consumers of the product in the importing country lose consumer surplus.
B. Producers of the product in the exporting country lose producer surplus.
C. Producers of the product in the importing countries lose producer surplus.
D. Consumers of the product in the exporting country lose consumer surplus.
Answer: C
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If price elasticity is less than one, then demand is said to be inelastic
Indicate whether the statement is true or false
The difference between an international corporation and a multinational corporation is that the international corporation
a. produces in North America while the multinational corporation produces worldwide b. sells its products in North America while the multinational corporation sells its products worldwide c. sells only products while the multinational corporation sells products and services d. produces only in the home country while the multinational corporation produces in two or more countries e. exports goods and services while the multinational corporation imports goods and services
Society definitely benefits by reducing the number of monopolistically competitive firms.
Answer the following statement true (T) or false (F)
A production function shows
A. How total costs increase as labor is added. B. How a firm's costs of production increase as it produces more goods. C. How a firm's production changes as quantity of labor and other inputs changes. D. How production changes as its unit costs go up.