Suppose the Christmas trees market is perfectly competitive. A business owner is currently suffering from a loss of $1,000, the cost of producing and selling an additional Christmas tree is $20, and the current market price is $25. The owner
A) should sell more trees.
B) should shut down his business now.
C) should advertise in the market.
D) is already minimizing his loss.
A
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The price of one good in relation to the price of another good is called:
A) absolute prices B) exchange rate C) relative prices D) none of the above
An increase in the value of the U.S. dollar will tend to cause, other things the same ________
A) an increase in the volume of U.S. imports B) an increase in the volume of U.S. exports C) an increase in the volume of U.S exports and imports D) a decrease in the volume o U.S. exports and imports
Comparing firms in perfectly competitive markets to monopoly firms, which can earn economic profits in the long run?
Which of the following assessments is correct based on the information presented in Exhibit 3?
a. Calvin has an absolute advantage in food production.
b. Calvin has a lower opportunity cost in cloth production.
c. Wendy has a higher opportunity cost in food production.
d. Wendy has a comparative advantage in cloth production.