Compare and Contrast the Three Market Models in Terms of the Profit-Maximizing

question 103

Essay

Compare and contrast the three market models in terms of the profit-maximizing output level for each,the shutdown rule for each,and the probability of long-run economic profits being earned.

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Definitions:

U.S. Imports

Goods and services purchased by residents of the United States from other countries.

U.S. Exports

Goods and services produced in the United States that are sold to other countries.

Foreign Portfolio Investment

Foreign portfolio investment involves holding financial assets from a country outside of the investor's own country.

Net Capital Outflow

The difference between the domestic country's purchases of foreign assets and foreign investments in the domestic country over a specific period.