Which of the following events would cause the supply curve to decrease from S1 to S2?
A. lower expected future prices
B. an increase in the price of inputs
C. an increase in the number of firms in the market
D. a decrease in the price of inputs
Answer: B. an increase in the price of inputs
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Which of the following is not a basis for trade between two nations?
a. different skill levels of the labor forces b. one nation's absolute advantage c. a difference in tastes between countries d. economies of scale e. different capital stocks
Which of the following is not a requirement for price discrimination?
a. The firm must be able to identify consumers who are willing to pay more for the product. b. The firm must be able to prevent resale of the product. c. There must be a downward-sloping demand curve for the product. d. The firm must face different costs for the goods sold to different consumers.