Refer to the diagram above, which represents a country's supply and demand for an internationally traded good. If PW is the world price, and a foreign country engages in dumping by selling at P2, total domestic production will ________ to ________
A) increase; Q2
B) decrease; zero
C) increase; Q5
D) increase; Q3
B
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A profit-maximizing monopolistically competitive firm produces and sells an allocatively efficient quantity of output
Indicate whether the statement is true or false
The poor have demonstrated a marked ability to move out of poverty when economic opportunities improved
Indicate whether the statement is true or false
For a short-run cost function which of the following statements is (are) not true?
a. The average fixed cost function is monotonically decreasing. b. The marginal cost function intersects the average fixed cost function where the average variable cost function is a minimum. c. The marginal cost function intersects the average variable cost function where the average variable cost function is a minimum. d. The marginal cost function intersects the average total cost function where the average total cost function is a minimum. e. b and c
An efficient allocation of resources is demonstrated by a point
A. above the production possibilities frontier. B. below the production possibilities frontier. C. on the production possibilities frontier. D. near the middle of the production possibilities frontier.