In the long run, economic profits are:
a. possible both for a monopolist and for a perfectly competitive firm.
b. possible for a monopolist but not for a perfectly competitive firm.
c. possible for a perfectly competitive firms but not for a monopolist.
d. impossible for both a monopolist and for a perfectly competitive firm.
Question 2
When the world price of the traded good is lower than the domestic no-trade equilibrium price, free trade causes domestic production to fall and domestic consumption to rise.
a. True
b. False
Indicate whether the statement is true or false
