If the world price of apples is higher than Argentina's domestic price of apples without trade, then Argentina
a. should import apples.
b. has a comparative advantage in apples.
c. should produce just enough apples to meet its domestic demand.
d. should refrain altogether from producing apples.
b
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In a supply-and-demand graph, producer surplus can be pictured as the
A) vertical intercept of the supply curve. B) area between the demand curve and the supply curve to the left of equilibrium output. C) area under the supply curve to the left of equilibrium output. D) area under the demand curve to the left of equilibrium output. E) area between the equilibrium price line and the supply curve to the left of equilibrium output.
The winner's curse is more likely when the value of a good at auction is uncertain
a. True b. False
Omega, Inc., accounts for 15 percent of total sales in its industry. It uses a highly technical process on a raw material that is difficult to acquire. The firm closely monitors pricing and output developments in its industry. What additional information is needed to classify this industry as part of an oligopoly?
a. the number of patents held by Omega’s competitors b. the number of competitors and their market shares c. the level of government restriction on the industry d. the start-up costs for a new firm entering the industry
What is the price of coffee when the demand is 15 pounds per year?
a. $2 per pound
b. $3 per pound
c. $4 per pound
d. $5 per pound