Answer the following statement(s) true (T) or false (F)

1. A country will gain from international trade whenever the world relative price differs from the autarkic relative price.
2. Large countries have more to gain from international trade than small countries do.
3. A perfectly competitive firm is one that can sell any quantity that it wants at any price it wants.
4. A competitive firm faces a downward-sloping demand for its product.
5. For a competitive firm, marginal revenue is constant and equal to the market price.


1. True
2. False
3. False
4. False
5. True

Economics

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Economics