Author Question: Assume that recent oil exploration coupled with a fall in demand reduced petroleum imports of a ... (Read 22 times)

c0205847 · **on:** Jun 30, 2018

Assume that recent oil exploration coupled with a fall in demand reduced petroleum imports of a nation to zero. We can expect:
a. the domestic price of petroleum to fall below the world price.
b. the world price of petroleum to fall to equal the domestic price.
c. petroleum exported by the domestic producers to increase.
d. petroleum exported by the domestic producers to decrease.

Question 2

In the short-run, a perfectly competitive firm can earn normal profits or above normal profit but it cannot incur losses.
a. True
b. False
Indicate whether the statement is true or false