In monopolistically competitive industries, the market sets the price.
Answer the following statement true (T) or false (F)
False
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In an open economy, domestic investment equals:
A. domestic saving plus net capital outflows. B. domestic saving. C. net capital inflows. D. domestic saving plus net capital inflows.
Assume that by devoting all of its resources to the production of X, nation Alpha can produce 40 units of X. By devoting all of its resources to Y, Alpha can produce 60Y. Comparable figures for nation Beta are 60X and 40Y. We can conclude that
A. Alpha should specialize in Y and Beta in X. B. the terms of trade will be 3X equals 1Y. C. Alpha should specialize in X and Beta in Y. D. there is no basis for mutually beneficial specialization and trade.
Refer to Table 5.1. What is Hector's opportunity cost of producing one bracelet?
A) 1/5 of a tiara B) 1.5 tiaras C) 5 tiaras D) 6 tiaras
The figure above represents the production possibilities frontier for a country. a) The nation is currently producing at point B and wants to move to point C
What is the opportunity cost of the move? b) The nation is currently producing at point B and wants to move to point A. What is the opportunity cost of the move?