A country must have comparative advantage in a good in order to have absolute advantage in that good

Under a fixed exchange rate regime, if the domestic currency is initially ________, that is, ________ par, the central bank must intervene to sell the domestic currency by purchasing foreign assets

A) overvalued; below B) overvalued; above C) undervalued; below D) undervalued; above

Which of the following best describes the situation likely to unfold after a new manufacturing firm enters an oligopolistic market?

a. The new firm is initially hampered by economies of scale. b. The new firm initially has low costs of production that increase over time. c. The new firm has high sales during its early years followed by a sales decline. d. The new firm is initially very profitable.