A market failure is most likely to occur when:
A. a sole producer of a good faces no threat of competition.
B. several producers of a good compete for customers by having price wars.
C. several producers of a good search for the lowest-cost method of production.
D. many producers produce identical products, and only the consumers and producers are affected by the transactions.
A. a sole producer of a good faces no threat of competition.
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If Wendy can produce more of all goods than Tommy in an hour, then
A) Wendy has an absolute advantage in all goods. B) Wendy does not need to trade with Tommy in order to achieve the gains from trade. C) Wendy has a comparative advantage in all goods. D) Tommy has an absolute advantage in all goods. E) Only Tommy but not Wendy can benefit from trade between the two of them.
The point where the PPF intersects the vertical axis is
What will be an ideal response?
Describe the four legal procedures available to U.S. firms to seek protection from foreign competition. What circumstances would warrant a request under each? How frequently is each used? What would be the result if the firm won?
What will be an ideal response?
When the supply of Swiss cheese decreases while the demand for Swiss cheese increases, the equilibrium ________ of Swiss cheese will definitely ________, ceteris paribus.
A. price; increase B. price; decrease C. quantity; increase D. quantity; decrease