Suppose Rice Can Be Produced in Country X at a Lower

question 112

Multiple Choice

Suppose rice can be produced in country X at a lower cost than in country Y, while tuna can be produced in country Y at a lower cost than in country X. International competition will:

• A) destroy the rice market in both countries.
• B) drive X to specialize in rice and Y to specialize in tuna.
• C) drive Y to specialize in rice and X to specialize in tuna.
• D) cause both X and Y to reject international specialization.

Explain the significance of entry and exit of firms in a perfectly competitive market and its effect on long-run equilibrium.

Identify the conditions for long-run equilibrium in a perfectly competitive market.

Describe the characteristics of a perfectly competitive industry that lead to efficiency.

Calculate industry supply based on individual firm supply in a perfectly competitive setting.

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Definitions:

Service Quality

The degree to which a delivered service meets and fulfills the customer's expectations and requirements.

Determinants

Factors that decisively affect the nature or outcome of something.

Quality Management

A strategic approach focused on maintaining and improving the quality of products and services in organizations, ensuring customer satisfaction and compliance with regulations.

Product Strategy

The approach a company takes to develop and market products, defining what products will be offered, to whom, and how.