The idea that efficient producers can benefit from trading with inefficient producers is known as
a) the theory of competitive advantage
b) the Hecksher-Ohlin theorem
c) the Stolper-Samuelson theorem
d) New Trade Theory
e) comparative advantage
e) comparative advantage
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If the costs of producing pizza increase, which will occur?
A) The supply of pizza will decrease. B) The demand curve for pizza will shift leftward when the price of a pizza increases. C) Pizza will cease to be produced and sold. D) The quantity of pizzas supplied will increase as sellers try to cover their costs. E) The demand curve for pizza will shift rightward when the price of a pizza increases.
A resource's earnings are all economic rent when the resource has no alternative uses
a. True b. False
In competitive markets, negative economic profits are eliminated by entry to the industry
a. True b. False Indicate whether the statement is true or false
If price were regulated to be equal to long-run marginal cost, the firm in Figure 13.3 would be:
A. making a zero economic profit. B. losing money. C. making a positive economic profit. D. breaking even.