Alpha can produce either 18 tons of oranges or 9 tons of apples in a year, while Omega can produce either 16 tons of oranges or 4 tons of apples. Which of the following statements is true?
a. Alpha should export to Omega, but Omega should not export to Alpha
b. Since Alpha has an absolute advantage in both goods, no mutual gains from trade are possible.
c. If Alpha specializes in growing apples and Omega specializes in growing oranges, they could both gain by specialization and trade.
d. If Alpha specializes in growing oranges and Omega specializes in growing apples, they could both gain by specialization and trade.
c
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The objective of creating a brand name is:
a. to reduce the price of the product. b. to ensure a steady supply of the good in the market. c. to reduce the price elasticity of demand. d. to reduce the cost of production of the firm. e. to attract rival firms into the market.
Which statement explains why monopolists are not productively efficient?
a. Monopolists do not produce at the minimum of the average cost curve. b. Monopolists produce at the quantity where P = MC. c. Monopolists spend too much on developing innovative products. d. Monopolists produce too many goods at a lower average cost.