Q1 what are the terms of trade if the united states trades

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Reference no: EM13351981

Q1. What are the terms of trade if the united states trades 1 can of soda for 5 units of clothing?

Explain why price regulation of a monopoly in a contestable market will not correct a market inefficiency.

Q2. Assume the generic production function Q=f(K,L) displays both decreasing returns to capital (K) and decreasing returns to labour (L), then:

Answer this production function will certainly display decreasing returns to scale.

This production function will certainly display constant returns to scale.

This production function will certainly display increasing returns to scale.

This production function may display increasing returns to scale.

Reference no: EM13351981

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