Which of the following best explains the effect of specialization on production as shown in Exhibit 5?
a. Specialization provides more goods overall to be divided between Techland and Grainsville.
b. By specializing in computers, the people of Techland no longer have grain to consume.
c. Grainsville is an agrarian society and as such does not have a need for computers.
d. Computers are more expensive than grain, so the people of Techland benefit most.
a. Specialization provides more goods overall to be divided between Techland and Grainsville.
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A market with many sellers, some influence over price, low barriers to entry, a differentiated product, and non-price competition often taking the form of advertising is known as
A) perfect competition. B) monopolistic competition. C) oligopoly. D) monopoly.
If a monopolist is producing a level of output where MR is less than MC, then it should
A. Increase its output. B. Lower its price. C. Lower its output. D. Shift its marginal cost curve upward.