Mixster Concrete Company is considering buying a new cement truck. The owners and their accountants decide that this is the profitable thing to do. Before they can buy the truck, the interest rate and price of trucks change. In which case do these changes both make them less likely to buy the truck?
a. Interest rates rise and truck prices rise.
b. Interest rates fall and truck prices rise.
c. Interest rates rise and truck prices fall.
d. Interest rates fall and truck prices fall.
a
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In monopolistic competition, the demand curve for a firm's product is negatively sloped because of
A) barriers to entry. B) no barriers to entry. C) product differentiation. D) economies of scale.
If Canada can produce 500 TV sets at the cost of 10 cars, while Mexico can produce 1,000 TV sets at the cost of 8 cars, we know the following:
a. Canada has a comparative advantage in TV production. b. Mexico has the absolute advantage in TV production. c. The two countries' joint output equals 1,500 TV sets and 18 cars without trade, but it will be higher after proper specialization and trade. d. Canada has a comparative advantage in car production. e. Canada produces more cars than Mexico does.