Sally can make 8 cups of soup per hour or 20 crackers per hour. Harry can make 10 cups of soup per hour or 30 crackers per hour. Can Sally and Harry gain from trade? If so, what is the range of prices of crackers for soup at which they would both find trade advantageous?
Yes. More than 2.5 crackers per cup of soup but less than 3 crackers per cup of soup.
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Use the following graphs to answer the next question.
The long-run equilibrium for a monopolistically competitive firm is represented by graph
A. A. B. B. C. C. D. D.
If the balance on the current account in the United States is $750 billion, which of the following is most likely to be true?
A) The balance on the financial account is negative. B) The trade balance is negative. C) The balance on the capital account is positive. D) Net foreign investment is negative.
The HPAE have been more open to imports than most developing countries
Indicate whether the statement is true or false
The key characteristics of a monopolistically competitive market structure include
A) many small (relative to the total market) sellers acting independently. B) all sellers sell a homogeneous product. C) barriers to entry are strong. D) sellers have no incentive to advertise their products.