In the Specific Factors Model,the Effects of Trade on Welfare

question 50

Multiple Choice

In the specific factors model,the effects of trade on welfare are ________ for mobile factors,________ for fixed factors used to produce the exported good,and ________ for fixed factors used to produce the imported good.

• A) ambiguous; positive; negative
• B) ambiguous; negative; positive
• C) positive; ambiguous; ambiguous
• D) negative; ambiguous; ambiguous
• E) positive; positive; positive

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Definitions:

Monopolist

A Monopolist is a sole provider of a product or service in a market, facing no competition and having the power to control prices and market supply.

Perfect Price Discrimination

A pricing strategy where a seller charges each buyer their maximum willingness to pay, capturing the entire consumer surplus.

Average Revenue

The revenue a company receives per unit of goods or services sold, calculated by dividing total revenue by the number of units sold.

Monopolist

An individual or entity that holds a monopoly in a market, being the sole provider of a particular product or service, facing no direct competition.