INTERNATIONAL TRADE FINAL EXAM

refer to the cost advantage experienced by a firm when it increases its level of output

• Economies of scale

• Internal economies of scale

• external economies of scale

• perfectly competitive market

This refers to economies that are unique to a firm. For instance, a firm may hold a patent over a mass production machine, which allows it to lower its average cost of production more than other firms in the industry.

• Economies of scale

• Internal economies of scale

• external economies of scale

• perfectly competitive market

These refer to economies of scale enjoyed by an entire industry. For instance, suppose the government wants to increase steel production. In order to do so, the government announces that all steel producers who employ more than 10,000 workers will be given a 20% tax break.

• Economies of scale

• Internal economies of scale

• external economies of scale

• perfectly competitive market

markets in which there are many buyers and sellers, none of whom represents a large part of the market—firms are price takers.

• Economies of scale

• Internal economies of scale

• external economies of scale

• perfectly competitive market

is a concept in microeconomics that describes a market structure controlled entirely by market forces.

• perfect competition

• imperfect competition

• monopolies

• oligopoly

occurs in a market when one of the conditions in a perfectly competitive market are left unmet

• perfect competition

• imperfect competition

• monopolies

• oligopoly

In __________ there is only one (dominant) seller. That company offers a product to the market that has no substitute.

• perfect competition

• imperfect competition

• monopolies

• oligopoly

In an________ there are many buyers but only a few sellers. Oil companies, grocery stores, cellphone companies, and tire manufacturers

• perfect competition

• imperfect competition

• monopolies

• oligopoly

occurs when there are many sellers who offer similar products that aren't necessarily substituted. Although the barriers to entry are fairly low and the companies in this structure are price makers, the overall business decisions of one company do not affect its competition. Examples include fast food restaurants like McDonald's and Burger King.

• perfect competition

• imperfect competition

• Monopolistic competition

• oligopoly

When firms differ in terms of their performance, economic integration generates winners and losers.

• True

• False