Author Question: If the perfectly competitive wiffle ball industry is bearing economic losses, we would expect that: ... (Read 96 times)

JMatthes · **on:** Jun 30, 2018

If the perfectly competitive wiffle ball industry is bearing economic losses, we would expect that:
a. output will increase, the price of wiffle balls will rise, and the economic losses would tend to disappear.
b. output will decrease, the price of wiffle balls will fall, and the economic losses would tend to increase.
c. output will decrease, the price of wiffle balls will rise, and the economic losses would tend to disappear.
d. output will increase, the price of wiffle balls will fall, and the economic losses would tend to disappear.

Question 2

A tradesman who purchases diamonds in a country where the price is low and sells them in another country where the price is high, can be said to be practicing:
a. arbitrage.
b. speculation.
c. derivatives trading.
d. forecasting.