A dominant-firm's residual demand curve is
A) the horizontal difference between the market demand curve and the supply curve of the fringe firms.
B) the vertical difference between the market demand curve and the supply curve of the fringe firms.
C) the demand curve left for the fringe firms after the dominant firm has determined an output level.
D) None of the above.
A
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International trade is based on the existence of
A) absolute advantage. B) perfect advantage. C) productivity advantage. D) comparative advantage.
From the perspective of the United States, a reduction in the nominal exchange rate will cause which of the following?
A) The dollar becomes more expensive to foreigners. B) Foreign goods are less expensive to Americans. C) Foreign currency is less expensive to Americans. D) American goods are less expensive to foreigners. E) none of the above