Government may actually establish temporary monopolies by the issuance of patents and copyrights.
Answer the following statement true (T) or false (F)
True
Rationale: The innovation of one firm in a monopolistically competitive market may throw that market into disequilibrium when it is granted a patent or copyright; that action may slow the process of reaching a new equilibrium, because the other firms cannot imitate the innovative firm.
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In a floating exchange market, the exchange rate for pesos and yen will not change when
A. the yen trades at a rate below the equilibrium level. B. the peso trades at a rate above the equilibrium level. C. the currencies trade at the equilibrium exchange rate. D. it will change in all of these situations.
Compare and explain the significance of the substitution and output effects as they apply to resource pricing. What relationship, if any, do they bear to the income and substitution effects discussed in connection with product demand?
What will be an ideal response?
The lowest possible elasticity shown here is
A. 10. B. 1.0. C. 0.1. D. 0.001.
Country A would have an absolute advantage compared to Country B in the production of corn if
A. Country A uses fewer resources to produce corn than Country B does. B. the demand for corn is higher in Country A than in Country B. C. corn can be produced at lower cost in terms of other goods than it could be in Country B. D. corn sells for a higher price in Country A than in Country B.