If India has an absolute advantage in rug production compared to England, then
a. India should export rugs to England
b. England should export rugs to India
c. England cannot benefit from free trade with India
d. England uses fewer resources to produce rugs than India
e. India uses fewer resources to produce rugs than England
E
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A single-price monopoly maximizes profit by producing the quantity at which _____
A. its total revenue will be as large as possible B. marginal revenue equals marginal cost and setting the price equal to marginal revenue C. marginal revenue equals marginal cost and setting the price equal to marginal cost D. marginal revenue equals marginal cost and setting the price equal to the most people are willing to pay for that quantity
Which of the following best illustrates the concept of derived demand?
a. As income rises, the demand for TVs rises. b. A fall in the price of cameras will increase the demand for film. c. A fall in the demand for tires will reduce the demand for rubber. d. When the price of gasoline rises, the demand for automobile repair falls. e. If consumers expect the price of coffee to rise, demand for coffee rises.