Suppose that U.S. firms outsource computer manufacturing jobs to China, it is expected that
A) the wage rate for workers manufacturing computers will decrease in the U.S. but increase in China.
B) the wage rate for workers manufacturing computers will increase in the U.S. but decrease in China.
C) the wage rate for workers manufacturing computers will increase in both the U.S. and China.
D) the wage rate for workers manufacturing computers will decrease in both the U.S. and China.
Answer: A
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The United Company competes with many other firms each producing slightly different products. Firms freely enter and exit this industry. The type of industry United Company operates in is
A) a monopoly. B) monopolistic competition. C) oligopoly. D) perfect competition. E) oligopolistic monopoly.
Refer to the below table. What output quantity will the monopolistic ally competitive firm produce to maximize profits?
Answer the question based on the demand and cost schedules for a monopolistic ally competitive firm given in the table below.
A. 2
B. 3
C. 5
D. 6