Briefly explain how specialization and trade can benefit nations
What will be an ideal response?
When nations specialize in what they have a comparative advantage and then trade with other nations, their production possibilities curves move outward, which yields greater production and consumption possibilities.
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What does market power refer to?
a) the side effects that may occur in a market b) the government regulations imposed on the sellers in a market c) the ability to influence price d) the forces of supply and demand in determining equilibrium price
Refer to Table 14-8. Which of the following is true?
A) Brawny Juice's dominant strategy is to select a high price. B) Power Fuel does not have a dominant strategy. C) Power Fuel's dominant strategy is to select a low price. D) Brawny Juice does not have a dominant strategy.