An option premium is
A) paid by the short to the long as soon as the option is purchased.
B) paid by the long to the short as soon as the option is purchased.
C) paid by the long to the short when the option is exercised.
D) paid by the short to the long when the option is exercised.
B
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If the world price is above the domestic "no-trade" equilibrium price, then with international trade, the shortage caused in the domestic market can be met by foreign imports
a. True b. False Indicate whether the statement is true or false
Suppose that a drug for treating cancer is cleared by the Food and Drug Administration and that the company is successful in obtaining a patent for its product. Which of the following is then TRUE?
A) The patent holder now faces barriers to entry. B) The method of producing the product would not be considered intellectual property. C) The patent holder has a monopoly. D) The drug would have many close substitutes.