Explain how Steve Jobs was able to make an economic profit with his company, Apple Computers
What will be an ideal response?
Jobs was able to make an economic profit, because he was able to create and maintain a profitable monopoly. While other companies in the industry focused on producing either software or hardware, Jobs decided Apple would produce both. This made Apple products difficult to replicate, since other producers were unable to duplicate both pieces.
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Which of the following is NOT a reason Mexico and Canada wanted a free trade agreement with the United States?
A) Mexico wanted increased direct foreign investment. B) Canada wanted to guarantee access to the U.S. market. C) Mexico wanted the United States to lower its high barriers to Mexican products. D) Canada wanted its firms to become more globally competitive. E) Mexico wanted to institutionalize its economic reforms.
In a perfectly competitive resource market, the labor supply curve facing the single firm is
A) vertical. B) horizontal. C) downward sloping. D) upward sloping.
We call an economy that is self-contained and does not engage in any trade with outsiders a(n):
A. autarky. B. oligopoly. C. oligarchy. D. monarchy.
Explain why the shape of the demand curve will determine how a shock to the market equilibrium affects price and quantity
What will be an ideal response?