Even when one country has an absolute advantage in all goods and another country has an absolute disadvantage in all goods, both countries can still benefit if they trade with each other
a. True
b. False
Indicate whether the statement is true or false
True
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Which alteration of the assumptions behind the Bertrand model can help avoid the Bertrand Paradox (that an outcome resembling perfect competition may arise with even as few as two firms)?
a. assume firms have limited capacities. b. assume firms produce differentiated rather than homogeneous products. c. assume firms play repeatedly and thus may collude. d. all of the above.
Given the production possibility tables for First and Second Bakeries shown, we can determine that:First BakerySecond BakeryCookiesPiesCookiesPies018091012306206603300900
A. Second Bakery has a comparative advantage in the production of pies. B. First Bakery has a comparative advantage in the production of pies. C. First Bakery has a comparative advantage in the production of both goods. D. neither bakery has a comparative advantage.