The ratio of a country's average export price to its average import price is
(a) its absolute advantage.
(b) its comparative advantage.
(c) its terms of trade.
(d) its exchange rate.
C
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A monopolist with constant average and marginal cost equal to 8 (AC = MC = 8) faces demand Q = 100 - P, implying that its marginal revenue is MR = 100 - 2Q. Its profit maximizing quantity is
a. 8 b. 46 c. 50 d. 92
Irrespective of whether she is at her optimum, Jenna's valuation of coffee relative to orange juice can be measured by
a. her marginal rate of substitution between coffee and orange juice. b. the price of coffee relative to the price of orange juice. c. the ratio of the quantity of coffee that she buys relative to the quantity of orange juice that she buys. d. the ratio of the quantity of coffee supplied in the market to the quantity of orange juice supplied in the market.