Suppose that the citizens of South Dakota decided to limit imports of citrus fruit from Florida and California on the grounds that climatic differences give those two states an unfair advantage in the production of those products. How would the analysis used to explain international trade apply?
The analysis is identical. If nations and persons benefit from specializing where they have comparative advantage (derived from whatever source), then states within the United States also benefit. In fact, the United States as the world's first free trade zone, is the strongest evidence that can be offered that free trade benefits all participants.
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According to the graph shown, producer surplus is:
A. $36.
B. $48.
C. $120.
D. None of these.
A monopoly price reflects a good’s marginal utility.
Answer the following statement true (T) or false (F)
The __________ the opportunity cost of doing something, the __________ likely a person will do that something
A) lower; less B) lower; more C) higher; more D) higher; less E) b and d
All else equal, a smaller elasticity of the supply curve to the other firms leads to a ________ individual firm's residual elasticity of demand
A) less elastic B) unit elastic C) more elastic D) zero