In analyzing international trade, we often focus on a country whose economy is small relative to the rest of the world. We do so
a. because it is impossible to analyze the gains and losses from international trade without making this assumption.
b. because then we can assume that world prices of goods are unaffected by that country's participation in international trade.
c. in order to rule out the possibility of tariffs or quotas.
d. All of the above are correct.
b
You might also like to view...
Which of the following industries is most likely to represent the monopolistic competition market structure?
A) automobiles B) tobacco products C) restaurants D) farm equipment
If the demand for opera singers increases faster than the supply, wages will rise
a. True b. False Indicate whether the statement is true or false
In the figure above, the wage rate is $600 and total fixed cost is $15,000. When there are 40 workers, what is average variable cost?
A. $12.00 B. $5.00 C. $6.00 D. $4.10 E. $0.23
Suppose the price of a package of guitar strings is $5. If Mark's marginal cost of producing that package of guitar strings is $5, his producer surplus from that package of guitar strings is:
A. $0. B. $1. C. $2. D. $3.