In the above figure, a single-price monopolist charges a price of ________, resulting in total revenue equal to area ________
A) $10; hbcd
B) $20; fjem
C) $10; fbcg
D) $30; fbcg
D
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Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table above gives their production possibilities
A) Blue Violet has a comparative advantage in teapots. B) Sweet Pansy has a comparative advantage in teapots. C) Both have a comparative advantage in teapots. D) Sweet Pansy has an absolute advantage in teapots.
The airline dominating Charlotte, North Carolina, once contended that it could not overcharge for fear of potential competition, if not at Charlotte, then at Raleigh, a two-hour drive away. Do you find this argument compelling, given the theory of contestable markets?
What will be an ideal response?
When a region can produce a good or service at a lower opportunity cost than others, it is said to have a(n) ______ advantage.
a. comparative b. productivity c. specialized d. absolute
The slope of the production possibilities curve is positive if there is free trade.
a. true b. false