In a free trade area, member nations have no trade barriers among themselves, but are free to set ...

In a free trade area, member nations have no trade barriers among themselves, but are free to set their own trade policies toward nonmembers.
 a. True
  b. False
  Indicate whether the statement is true or false

QUESTION 2

The total revenue curve of a monopolist is:
 a. U-shaped.
  b. inverted U-shaped.
  c. upward sloping.
  d. downward sloping.

QUESTION 3

A local monopoly is a firm that:
 a. is the sole supplier of a good, without substitutes, in a specific geographic area.
  b. is one of the suppliers of a good in a specific geographic area.
  c. supplies all the products needed by consumers in a country.
  d. produces to meet the requirement of only one consumer.
  e. is one of the suppliers of a good that has a lot of substitutes, in a specific geographic area.

QUESTION 4

If there are economies of scale throughout the relevant output range of production, which is false?
 a. It is a natural monopoly.
 b. It is more efficient to have a single firm produce the good.
 c. It would typically result from a firm's possession of an exclusive patent.
  d. One large firm can produce at lower cost than two or more smaller firms.

QUESTION 5

Government standards for products sold in the domestic market can have the effect of protecting domestic producers from foreign competition.
 a. True
  b. False
  Indicate whether the statement is true or false