In terms of efficiency, trade diversion is a _____ desirable outcome of a regional free-trade agreement, because trade is diverted from the ___________ producer to the __________ producer .

A firm has explicit costs of $110,000 and total revenue of $120,000. Which of the following is true about the firm?

A) The firm might be making an economic profit but we need more information about implicit costs to know for sure. B) The firm is definitely making an economic profit because it must be minimizing its opportunity cost. C) The firm is incurring an economic loss if implicit costs are $10,000. D) The firm is making a normal profit if implicit costs are $0. E) The firm may be making an economic profit but only if implicit costs are negative.

Which of the following is correct?

A. i. A surplus puts downward pressure on the price of a good. B. ii. A shortage puts upward pressure on the price of a good. C. iii. There is no surplus or shortage at equilibrium. Question 8 options: D. i and ii. ii and iii. i, ii, and iii. only iii. i and iii.