A. Each individual firm profit maximizes
B. There may be an incentive to cheat
C. The industry as a whole is loss making
D. There is no need to police agreements
A. all of these answers
B. are useful even in socialist economics such as the former Soviet Union
C. provide information about the quality of the product
give firms incentive to maintain high quality
A. productivity
B. age
C. sex
D. race
A. Capture the entire subsidy in the form of higher profits
B. Increase their level of production
C. reduce wages paid to domestic workers
D. consider the subsidy as a increase in production cost
A. Theory of reciprocal demand
B. Theory of absolute advantage
C. Theory of comarative advantage
D. Theory of mercantilism
A. Allows private ownership of capital
B. Has flexible exchange rates
C. Has fixed exchange rates
D. conducts trade with other countries
A. Australia
B. Argentina
C. China
D. Cuba