To keep a market from being contested, firms might
A. Match price reductions by rivals.
B. Practice price discrimination.
C. Seek to obtain a monopoly franchise from the government.
D. Increase their concentration ratio.
Answer: C
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Assume, for England, that the domestic price of wine without international trade is lower than the world price of wine. This suggests that, in the production of wine,
a. England has a comparative advantage over other countries and England will export wine. b. England has a comparative advantage over other countries and England will import wine. c. other countries have a comparative advantage over England and England will export wine. d. other countries have a comparative advantage over England and England will import wine.
Economists assume that rational people do all of the following except
A) use all available information as they act to achieve their goals. B) undertake activities that benefit others and hurt themselves. C) weigh the benefits and costs of all possible alternative actions. D) respond to economic incentives.