If Freedonia changes its laws to allow international trade in software and the world price is lower than its domestic price, then it must be the case that
a. both consumer surplus and producer surplus increase.
b. consumer surplus increases and producer surplus decreases.
c. consumer surplus decreases and producer surplus increases.
d. both consumer surplus and producer surplus decrease.
b
Economics
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Profits account for about 30 cents out of each dollar spent on goods in the United States
a. True b. False Indicate whether the statement is true or false
Economics
If a firm in a monopolistically competitive market has a demand curve that is shifting to the right, it will only stop shifting when:
A. the firm is earning zero economic profits. B. the firm's price is equal to its average total costs. C. other firms have no incentive to leave the market. D. All of these statements are true.
Economics