Which of the following is NOT a reason for Canada to join NAFTA?
a. Canadian firms can expand their markets by selling to the United States and Mexico.
b. Canadian firms can enjoy lower average costs by producing more.
c. Canada did not want U.S. products to dominate its domestic market.
d. Canada will see an increase in income and employment by joining NAFTA.
Ans: c. Canada did not want U.S. products to dominate its domestic market.
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Refer to the following figure. The price of capital is $50 per unit:
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