In the short run, international trade allows a monopolistically competitive firm an opportunity:
a. to produce more output.
b. to earn monopoly profits.
c. to reduce its average costs.
d. to produce more output, earn monopoly profits, and reduce its average costs.
Ans: d. to produce more output, earn monopoly profits, and reduce its average costs.
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Which of the following trade rounds was started in 2001 but has never been settled even in 2012 and whose goals were aimed at lowering tariffs on a wide range of industrial and agricultural products?
a. Uruguay b. Switzerland c. Doha d. All rounds have been completed.
The massive increase in government spending during World War II moved the economy in the span of a few short years from mass unemployment and price stability to "overfull" employment. This situation can be best illustrated in the figure above as a:
Refer to the figure above
A. Shift from AD2 to AD1
B. Shift from AD1 to AD2
C. Movement along AD1 from Q4 to Q1
D. Movement along AD2 from Q2 to Q3