A monopolist faces a demand curve given by P = 20 - Q and has total costs given by TC = Q2. By using a bit of calculus, you should be able to determine that the firm's marginal revenue is MR = 20 - 2Q and its marginal cost is MC = 2Q. Now suppose that the country in which this monopolist is located decides to engage in international trade. The world price of the product produced by the monopolist is $12. What is its profitmaximizing price?

If two countries specialize in the production of goods in which they have a comparative advantage, they can experience gains from trade

Indicate whether the statement is true or false

Nominal wages react slowly to changes in output for the following reasons, except one. Which is the exception?

a. The nominal wage may be fixed and independent of output because of labor contracts that last up to three years. b. The real wage remains constant despite changes in output. c. Firms with a reputation for paying stable nominal wages will find it easier to attract new workers. d. Changing the nominal wage can be costly to firms. e. Nominal wages may be set by slow-moving corporate bureaucracies.