Economics

In order for the condition E$/HK$ = PUS/PHK to hold, what assumptions

In order for the condition E$/HK$ = PUS/PHK to hold, what assumptions does the principle of purchasing power parity make? A) Only that there are no transportation costs and restrictions on trade. B) Only that the markets are perfectly competitive, i.e., P = MC. C) The factors of production are identical between countries. D) No […]

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Date: September 10th, 2020

Which of the following is TRUE about monopolistic competition? A) One

Which of the following is TRUE about monopolistic competition? A) One firm serves as the entire industry. B) A small number of firms serve the entire market. C) It is competition among many firms producing similar but differentiated products. D) The pattern of production and trade is difficult to predict. E) It enjoys no economies […]

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Date: September 10th, 2020