« previous next »

Author Question: What is NAFTA? What will be an ideal response?[br][br][b][color=#7BCCB5]Question ... (Read 83 times)

joe

  • Hero Member
  • *****
  • Posts: 627
on: Jun 29, 2018
What is NAFTA?
 
  What will be an ideal response?

Question 2

Comment on the following statement: The demand facing a firm in perfect competition is less elastic than the demand facing a firm in monopolistic competition.
 
  What will be an ideal response?


Joc

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Jun 29, 2018
Answer to Question 1

NAFTA, or the North Atlantic Free Trade Agreement is an agreement signed by the United States, Mexico, and Canada in which the three countries agreed to establish all North America as a free-trade zone.

Answer to Question 2

The statement is false. Firms in perfect competition face a large number of perfect substitutes for their products. Thus, the demand facing a firm in perfect competition is perfectly elastic (horizontal). While firms in monopolistic competition face a number of close substitutes, they are the only producers of their particular products. This gives them some ability to set the prices of their products without losing all demand. Thus, the demand curve faced by a firm in monopolistic competition is downward sloping and less elastic than that faced by a firm in perfect competition.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

joe

  • Hero Member
  • *****
  • Posts: 627
Reply #2 on: Jun 29, 2018
Thank you


Joc

  • Sr. Member
  • ****
  • Posts: 317
Reply #3 on: Jun 29, 2018
No problemo


« previous next »
 

Did you know?

Children with strabismus (crossed eyes) can be treated. They are not able to outgrow this condition on their own, but with help, it can be more easily corrected at a younger age. It is important for infants to have eye examinations as early as possible in their development and then another at age 2 years.

Did you know?

If you could remove all of your skin, it would weigh up to 5 pounds.

Did you know?

Looking at the sun may not only cause headache and distort your vision temporarily, but it can also cause permanent eye damage. Any exposure to sunlight adds to the cumulative effects of ultraviolet (UV) radiation on your eyes. UV exposure has been linked to eye disorders such as macular degeneration, solar retinitis, and corneal dystrophies.

Did you know?

The liver is the only organ that has the ability to regenerate itself after certain types of damage. As much as 25% of the liver can be removed, and it will still regenerate back to its original shape and size. However, the liver cannot regenerate after severe damage caused by alcohol.

Did you know?

According to the FDA, adverse drug events harmed or killed approximately 1,200,000 people in the United States in the year 2015.

How to solve a half life problem involving exponential models (Question 2) How to solve a half life problem involving exponential models (Question 2)
How to integrate trigonometric functions containing both tangent and secant (Question 1) How to integrate trigonometric functions containing both tangent and secant (Question 1)
The Let-Down Response The Let-Down Response
economic question economic question
economic question economic question
economic question economic question
Video: Methods that regulate pH

For a complete list of videos, visit our video library