If firms in a competitive market are not identical, then an increase in cost will
A) shift marginal cost to the right.
B) push the most inefficient firms out of the market.
C) push the most efficient firms out of the market.
D) Need more information.
B
Economics
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For trade to work out properly, _____.
(A) Both parties should have an absolute advantage. (B) Both parties should have a comparative advantage. (C) One party should have an absolute advantage while the other should have a comparative advantage. (D) Both parties should be making about the same profit from the exchange.
Economics
An increase in the average tax rate that ________ the budget deficit in an example of ________
A) raises, automatic stabilization B) raises, discretionary fiscal policy C) lowers, automatic stabilization D) lowers, discretionary fiscal policy
Economics