Indifference curves are
A) bowed in toward the origin if there is diminishing marginal rate of substitution.
B) straight lines if the goods are perfect complements.
C) right angles if the goods are perfect substitutes.
D) always bowed out and away from the origin.
A
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When an industry supply curve increases enough to erase economic profits,
a. weaker firms exit the industry b. quantity demanded decreases, but only slightly c. all firms in the industry incur economic losses d. entry of new firms and expansion of existing firms stop e. marginal revenue increases
Which of the following is true?
a. A nation cannot have a comparative advantage in the production of every good. b. A nation cannot have an absolute advantage in the production of every good. c. A nation can have a comparative advantage in the production of every good, but not an absolute advantage. d. A nation can have a comparative advantage in the production of a good only if it also has an absolute advantage. e. A nation cannot have an absolute advantage in the production of a good unless it also has a comparative advantage.