Assume, for England, that the domestic price of wine without international trade is lower than the world price of wine. This suggests that, in the production of wine,
a. England has a comparative advantage over other countries and England will export wine.
b. England has a comparative advantage over other countries and England will import wine.
c. other countries have a comparative advantage over England and England will export wine.
d. other countries have a comparative advantage over England and England will import wine.
a
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An industry characterized by a small number of dominant firms that face downward-sloping demand curves is best described as:
A) a monopoly. B) monopolistically competitive. C) an oligopoly. D) perfectly competitive.
During the postbellum period of U.S. history,
(a) the U.S. balance of payments experienced a deficit throughout the entire period. (b) manufacturing exports became the top foreign exchange earner. (c) cotton exports continued to be the top foreign exchange earner. (d) the U.S. never borrowed from foreigners.
Which of the following is not a common characteristic of oligopolistic firms?
a. high barriers to entry b. mutual interdependence c. a large number of sellers d. nonprice competition
Given the exit rule, where does a firm's long-run supply curve derive from? It is the section of the:
A. MC curve that lies above the ATC curve. B. AVC curve to the right of its minimum. C. MC curve that lies above the AVC curve. D. ATC curve to the right of its minimum.