Carson Manufacturing uses sharp but temporary price cuts to discourage new competition in the widget market. Which barrier to entry is used by Carson Manufacturing?

If some industries exhibit internal increasing returns to scale in each country, we should not expect to see

A) perfect competition in these industries. B) intra-industry trade between countries. C) inter-industry trade between countries. D) high levels of specialization in both countries. E) increased productivity in both countries.

MFP growth represented by a will be higher than the growth of labor productivity if

A) k > n. B) k < n. C) k = n. D) None of the above. The relative size of k and n do not affect MFP growth.