Which of the following statements correctly differentiates between a monopoly and a perfectly competitive firm?
A) A perfectly competitive firm faces an upward sloping demand curve, whereas a monopoly faces a horizontal demand curve.
B) A perfectly competitive firm sets its product price at its marginal cost, whereas a monopoly sets the price above its marginal cost.
C) A perfectly competitive firm faces a horizontal demand curve, whereas a monopoly faces an upward sloping demand curve.
D) A perfectly competitive firm sets its product price above its marginal cost, whereas a monopoly sets its product price equal to its marginal cost.
B
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The opportunity cost of producing one car in Germany is 2,000 bushels of wheat, and the opportunity cost of producing one car in Canada is 1,200 bushels of wheat. The two countries can realize mutual gains from trade if they agree on terms of trade that are
a. greater than 2,000 bushels of wheat per car b. less than 1,200 bushels of wheat per car c. greater than 1,200 bushels of wheat per car and less than 2,000 bushels of wheat per car, and Germany produces wheat d. greater than 1,200 bushels of wheat per car and less than 2,000 bushels of wheat per car, and Germany produces cars e. greater than 1,200 bushels of wheat per car and less than 2,000 bushels of wheat per car, and each country produces both goods
Which of the following is an example of a produced factor of production?
a. a plant in which automobiles are assembled b. skills that people accumulate in high school and college c. skills that people accumulate through experience in the workplace d. All of the above are correct.