A manager invests $400,00 . in a technology to reduce overall costs of production. The company managed to reduce their cost per unit from $2 to $1.85 . Ceteris peribus, if the firm continues its production in the same economic environment, the firms economic profits should

Which of the following statements is true about the trends in the flow of international trade witnessed in India since its independence?

a. Trade liberalization was unable to boost India's economy in the first few decades of independence. b. Indian software exports now reflect an annual growth rate of an impressive 55 percent. c. The opening of trade and modern telecommunications allowed India's production set to expand and gain comparative advantage in software. d. Trade has enabled Indian engineers to command higher wages than most other nations specializing in software.

Suppose a competitive market is comprised of firms that face identical cost curves. The firms experience an increase in demand that results in positive profits for the firms. Which of the following events are then most likely to occur? (i) New firms will enter the market. (ii) In the short run, price will rise; in the long run, price will rise further. (iii) In the long run, all firms will be

producing at their efficient scale. a. (i) and (ii) only b. (i) and (iii) only c. (ii) and (iii) only d. (i), (ii) and (iii)