If the world price is higher than the no-trade domestic price, then domestic producers gain, and domestic consumers lose as a result of free trade.

What happens to aggregate supply when production costs adjust completely to price increases?

a. Both equilibrium output and prices increase b. Only prices rise; equilibrium output remains fixed c. Only equilibrium output rises; equilibrium prices remain fixed d. Equilibrium output falls while prices rise e. Both equilibrium output and prices remain fixed

The production function does NOT provide information about

A) the technology used in the production process. B) the types of inputs used in the production process. C) the relationship between changes in quantity of inputs and changes in the quantity of output. D) the profits of producing a good.