If the autarkic and world relative prices are equal, then
a. consumers are better off with trade than without trade.
b. the country has the option of supplying either good in the world market.
c. no gains from trade are possible.
d. the world markets are not in equilibrium.
c. no gains from trade are possible.
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A contestable market is similar to a perfectly competitive market in that there
A) are barriers to entry. B) are no barriers to entry. C) can be only one firm in the market. D) will be no entry if the existing firm earns an economic profit.
The monopolist determines the price and quantity combination that maximizes short-run profits by
A) finding the quantity at which marginal cost and marginal revenue are equal and then using the demand curve to find price. B) determining the price by finding the highest price at which sales can be made and then using the demand curve to find the appropriate quantity. C) finding the point at which marginal revenue and demand intersect. This gives the price and quantity that maximizes profits. D) finding the quantity at which average revenue and average total cost are furthest apart.
In general, the MRP _____ as output increases.
A. declines B. rises C. stays the same
Financial account transactions occur
A. when an U.S. citizen purchases stock in an U.S. corporation. B. because of cross-border flows of financial assets. C. when you move money from one U.S. bank to another U.S. bank. D. when an U.S. company purchases goods from a foreign company.