Intraindustry trade is characterized by what two features?
What will be an ideal response?
Economies of scale and differentiated products
You might also like to view...
The value of money or income in terms of the quantity of goods the money can buy is called its
A) nominal value. B) marginal value. C) real value. D) implicit value.
When a recession ends,
A) the household sector decreases spending substantially. B) interest rates decrease. C) households decrease spending on durable goods. D) firms increase the amount of borrowing.
Suppose the demand for pizza in a small isolated town is p = 10 - Q. There are only two firms, A and B. Each has a cost function TC = 2 + Q. Determine the equilibrium quantities of each if firm A is the Stackelberg leader
What will be an ideal response?
A disadvantage of team production compared to contracting out is that
a. transaction costs are often higher with team production. b. the level of specialized knowledge required by team production is greater than with contracting out. c. the problem of shirking must be more carefully addressed with team production. d. team production increases the cost of production in most situations.