When nations trade the result would most likely be:
A. increase in total production, which can benefit every nation involved.
B. decrease in total production across nations but increases it for some.
C. decrease in total production across all nations but benefits every nation because they are individually more productive.
D. increase in total production, which would benefit only the wealthier nation.
Answer: A
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Indicate whether the statement is true or false
Suppose there are two market structures: A and B. Market A is characterized by free entry and exit of firms and firms under this structure face a horizontal demand curve. Market B has only one seller. Identify the market structures
Comment on the pricing mechanism, long-run profitability, and social surplus under both market structures.