The principle of comparative advantage explains how
a. one nation can take advantage of another one through international trade.
b. two nations may engage in mutually beneficial trade, even though one of them is more productive than the other.
c. one individual can take advantage of another through international trade.
d. some people are good at producing everything, while others have no comparative advantages.
e. some nations end up with large trade surpluses.
b
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A monopolistically competitive firm earning profits in the short run will find the demand for its product decreasing and becoming more elastic in the long run as new firms move into the industry until
A) the original firm is driven into bankruptcy. B) the firm's demand curve is perfectly elastic. C) the firm exits the market. D) the firm's demand curve is tangent to its average total cost curve.
Securities exchanges pay no attention to hedge funds
a. True b. False