With free trade, the demand curve facing a small-country monopolist:
a. is horizontal at the world price.
b. shifts upward by the amount of imports demanded.
c. shifts downward by the amount of imports demanded.
d. is horizontal at the firm's MC.
Ans: a. is horizontal at the world price.
You might also like to view...
When analyzing the impact of government consumption and taxes in an open economy, we exclude transfer payments because:
a. they are not paid for by taxes. b. in the aggregate, they do not generate a change in total spending on goods and services. c. the sums are so large as to be incalculable. d. the sums are so small as to be insignificant.
Anna owns a dog grooming salon in Brunswick, Georgia. The above table has Anna's total product schedule. Anna pays each worker $300 per week and she pays rent of $600 a week for her salon. These are her only costs
When Anna has a staff of 6 workers, her average fixed cost equals A) $600. B) $2.50. C) $7.50. D) $10.00. E) $6.00.