If country A has a higher cost of producing good X than country B, then country:
B should impose a tariff on the exports of product X
B has a comparative advantage in the production of product X
A should impose a tariff on the imports of product X
A has a comparative advantage in the production of product X
B has a comparative advantage in the production of product X
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The above figure shows a perfectly competitive firm. If the market price is $5 per unit, the firm
A) will definitely shut down to minimize its losses. B) will stay open to produce and will make zero economic profit. C) will stay open to produce and will incur an economic loss. D) will stay open to produce and will make an economic profit. E) might shut down but more information is needed about the fixed cost.
Consumers should purchase quantities of a good to the point where MU > P
a. True b. False Indicate whether the statement is true or false
Hailey's income is $40 per week. She spends all of it on coffee (C) and doughnuts (D). Coffee costs $2 per cup and doughnuts cost $1 each. Her marginal rate of substitution for coffee with doughnuts is D/C. How many cups of coffee and how many doughnuts will she purchase each week?
A. 15 cups of coffee and 10 doughnuts B. 10 cups of coffee and 20 doughnuts C. 20 cups of coffee and 10 doughnuts D. 5 cups of coffee and 30 doughnuts
Every economy must ration goods in some way because of
a. overpopulation. b. poorly-performing markets. c. the income gap between rich and poor. d. scarcity.