Firms taking advantage of ____________ accounts for the downward slope in the long-run average cost curve.

Suppose a bond promises to pay its holder $100 a year forever. The interest rate on the bond rises from 4 percent to 5 percent. The price of the bond

A) falls from $2,500 to $2,000. B) does not change because it is not affected by the interest rate. C) falls from $25,000 to $20,000. D) rises from $2,000 to $2,500.

If a customs union leads to a large amount of trade diversion relative to trade creation, it may be beneficial to world welfare

Indicate whether the statement is true or false