In the Long Run Import Quotas Do Not Affect the Size

question 151

True/False

In the long run import quotas do not affect the size of net exports.

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Definitions:

Economic Profit

This is the difference between total revenue and total costs, including both explicit and implicit costs.

Monopoly Profit

The excess profits a monopoly firm earns over what it would earn if the industry were perfectly competitive, due to its control over the market supply and pricing.

Profit Maximizing

A strategy or point where a firm or individual produces at a level where the difference between total revenue and total cost is the greatest.

P = MC

The condition where price equals marginal cost, often used to determine the optimal level of output in perfect competition.