A mixed economy blends private and public elements.

Foreign competition will always put a domestic industry at a disadvantage. This leads to massive trade adjustment assistance on the part of each country

a. True b. False Indicate whether the statement is true or false

If a competitive firm’s short-run average cost curve lies above the price of the product, we can conclude that the firm

A. is earning a huge profit. B. is incurring losses. C. is earning zero economic profits. D. is earning a normal profit.