Assume that Sweden will specialize in either boats or cars. What is their opportunity cost of producing three cars?

Which of the following will not happen as a consequence of a monopolistically competitive firm suffering economic losses in the short run?

A) The firm will exit the industry if it continues to suffer economic losses. B) In the long run the firm will be able to charge a price that is greater than its average total cost. C) The firm's demand curve will shift to the right if it stays in business in the long run. D) The firm will break even if its stays in business in the long run.

If it is assumed that capital is alike and freely mobile between economies, the Solow growth model

A) has no need of the recent attempts at improving it. B) suffers from the "exogeneity" problem. C) suffers from the "non-convergence" problem. D) suffers from the "incentives" problem.