Gains from Trade Is The

question 112

Multiple Choice

Gains from trade is the:

• A)increase in welfare that both countries experience as a result of specialization and trade.
• B)transfer of surplus by the receiving country that results from trade.
• C)deadweight loss the losing country experiences as a result of trade.
• D)increased skills and human capital that result from specialization and trade.

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Definitions:

Shut Down

A short-term decision by a firm to cease production due to unfavorable market conditions, with the possibility of resuming operations in the future.

Operate

To conduct the affairs of a business or other organization; to function or be active.

Shut Down

A short-term decision by a firm to cease production temporarily due to unfavorable market conditions.

MC = MR

This refers to the point where Marginal Cost equals Marginal Revenue, often used as a condition for profit maximization in economic theory.