ECON 201 Lecture Notes - Lecture 1: Marginal Revenue, Autarky, Nash Equilibrium
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Chapter 15 international trade: multiple choice questions, all of the following statements are incorrect except, a monopolist is a price taker. Firms in a monopolistic competitive market have no control over the market price of their product. Sometimes it is difficult to distinguish between firms that are monopolistically competitive and those that are oligopolistic. In a monopoly market structure, there are few barriers to new firms entering the market. International trade brings higher living standards by permitting greater specialization. In the short run, all individuals benefit from international trade. This is the result of ____: not produce; negatively sloped demand curve, produce; free entry and exit, not produce; free entry and exit, produce; negatively sloped demand curve. They try to form a cartel and they promise each other that if one firm cheats, the other firm will increase production dramatically to drive industry profits to negative values.