Supply is said to be inelastic if the quantity supplied responds substantially to changes in the price and elastic if the quantity supplied responds only slightly to price

The above figure shows the demand and cost curves for a firm in monopolistic competition. The firm earns total revenue of

A) $120. B) $40. C) $160. D) $0.

The product life cycle theory predicts that comparative advantage shifts away from the country of origin if:

a. the product is introduced in many countries simultaneously. b. the product is highly demanded in international markets. c. the demand for the product drastically declines in the domestic market of the country where it was invented. d. other countries have lower manufacturing costs using the now-standardized technology. e. other countries develop highly skilled labor force to improve product quality.