Products traded between two nations that are very similar and very close substitutes, but that may be of different quality or prices, are called:

An appreciation in the U.S. dollar benefits which of the following groups of people?

A. All people living in the United States B. U.S. producers who export farm equipment to other countries C. U.S. consumers who buy imported automobiles D. Foreigners who wish to travel to the United States

A firm sells a product in a perfectly competitive market. The marginal cost of the product at the current output level of 500 units is $1.50. The market price of the product is $1.50 and the minimum possible average variable cost is $1. To maximize profits, the firm should

A. decrease production to less than 500 units. B. continue producing 500 units. C. shut down. D. increase production to more than 500 units.