This topic contains a solution. Click here to go to the answer

Author Question: What is meant by world price of a good? How do the domestic price and the world price of a good ... (Read 47 times)

washai

  • Hero Member
  • *****
  • Posts: 523
What is meant by world price of a good? How do the domestic price and the world price of a good together determine whether a country will be an importer or exporter of a certain good?
 
  What will be an ideal response?

Question 2

In the figure above, an
 
  A) efficient output results, but the firm incurs a loss per household which must be subsidized in some way.
  B) inefficient output results, though the firm covers its costs.
  C) efficient output results, though marginal costs exceed average total costs.
  D) inefficient output results because the firm cannot cover its costs.
  E) efficient output results because consumer surplus is maximized.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

angrybirds13579

  • Sr. Member
  • ****
  • Posts: 344
Answer to Question 1

The world price of a good is the prevailing price of the good in the world market. The domestic price and the world price of a good play an important role in determining whether a country will export the good or import the good. If the domestic price of a good in a country is lower than the world price of the good, the country should export the good. On the contrary, if the domestic price of a good is higher than the world price of the good, the country should import the good.

Answer to Question 2

A




washai

  • Member
  • Posts: 523
Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review


cici

  • Member
  • Posts: 325
Reply 3 on: Yesterday
Gracias!

 

Did you know?

People about to have surgery must tell their health care providers about all supplements they take.

Did you know?

Elderly adults are living longer, and causes of death are shifting. At the same time, autopsy rates are at or near their lowest in history.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

When blood is deoxygenated and flowing back to the heart through the veins, it is dark reddish-blue in color. Blood in the arteries that is oxygenated and flowing out to the body is bright red. Whereas arterial blood comes out in spurts, venous blood flows.

Did you know?

Blastomycosis is often misdiagnosed, resulting in tragic outcomes. It is caused by a fungus living in moist soil, in wooded areas of the United States and Canada. If inhaled, the fungus can cause mild breathing problems that may worsen and cause serious illness and even death.

For a complete list of videos, visit our video library