In the long run, economic profits are: a. possible both for a ...

[mckennatimberlake]

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

[xoxo123]

Answer to Question 1

b

Answer to Question 2

True