All models of oligopoly involve pricing above marginal cost and output levels below the competitive level.
Answer the following statement true (T) or false (F)
False
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For each surfboard that Australia produces, it gives up the opportunity to make 25 boomerangs. New Zealand can produce 1 surfboard for every 15 boomerangs it produces
Which of the following is true about the comparative advantage between the two countries? A) Australia has the comparative advantage in producing surfboards. B) New Zealand has the comparative advantage in producing surfboards and boomerangs. C) Australia has the comparative advantage in producing boomerangs. D) New Zealand has the comparative advantage in producing boomerangs.
Which of the following statements describes the long-run effects of global outsourcing?
A) Wages for U.S. workers will decrease but wages in other countries will increase. B) Wages in all countries will remain the same as before the outsourcing. C) Wages and employment will increase globally. D) Wages will increase globally and employment will stay the same.
What does the circular flow model show?
(A) What inputs are required for what outputs. (B) How many firms can support the needs of how many households. (C) How profits are made. (D) The interactions between households and businesses in the free market.
Suppose ABC Corporation is willing to sell 100 shirts when the price is $10 and 200 shirts when the price is $15, but XYZ Inc is willing to sell 500 shirts when the price is $10 and 350 shirts when the price is $15. Which of the following statements about the two companies is correct?
A. ABC Corporation follows the law of supply, but XYZ Inc does not. B. ABC Corporation does not follow the law of supply, but XYZ Inc does. C. Both ABC Corporation and XYZ Inc follow the law of supply. D. Neither ABC Corporation nor XYZ Inc follow the law of supply.