Refer to the data. Assuming that the firm is motivated by self-interest and that the 20 units that can be produced with each technique can be sold for $2 per unit, the firm will:
Answer the question using the following data, which show all available techniques for producing 20 units of a particular commodity:
A. realize an economic profit of $10.
B. realize an economic profit of $4.
C. not earn any economic profit.
D. shut down rather than incur a loss by producing.
A. realize an economic profit of $10.
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iPods are less expensive in Canada than the United States, once the exchange rate is taken into account. This is an indication that
A) the nominal exchange rate is equal to one. B) purchasing power parity does not hold. C) the law of one price holds. D) the exchange rate is fixed.
Opportunities created by trade:
A) induce a greater degree of specialization. B) are evidenced by higher opportunity costs of production. C) are a result of absolute advantage. D) are few and far between.
Describe the two main categories of responses to global climate change.
What will be an ideal response?
Explain how advertising can act as a signal.
What will be an ideal response?