Suppose an American worker can make 100 chairs or catch 900 fish per day. On the other hand, a Chilean worker, can make 40 chairs or catch 400 fish per day. The United States has an absolute advantage in the production of both fish and chairs. This means that the United States:
A. should produce only chairs and trade with Chile to get fish.
B. should produce only fish and trade with Chile to get chairs.
C. should take advantage of Chile by trading with them.
D. can produce more fish and chairs than Chile given the same amount of workers.
D. can produce more fish and chairs than Chile given the same amount of workers.
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Because economic profits are eliminated in the long run in monopolistic competition, to earn an economic profit firms continuously
A) shut down. B) exit the industry. C) innovate and develop new products. D) declare bankruptcy. E) decrease their costs by decreasing their selling costs.
A French import is a good
a. produced in France and sold to Britain b. used in the production of a French good c. produced in Britain d. consumed in Britain e. produced in Britain and sold to France