If We Allow Free Trade in a Small Nation's Industry

question 39

Multiple Choice

If we allow free trade in a small nation's industry where there is a domestic monopolist, the monopoly firm:

• A) gains even more power.
• B) sees its profits rise.
• C) becomes a price taker, is not able to charge a higher price, and behaves like a competitive firm.
• D) is able to charge a higher price.

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Definitions:

Psychoanalysis

A therapeutic method and theory of psychology which emphasizes exploring unconscious motives and conflicts, primarily developed by Sigmund Freud.

Cognitive Therapy

A form of psychotherapy that focuses on changing unhelpful or distressing thoughts and behaviors.

Growth-Impeding

Factors or conditions that hinder or slow down the natural development or enlargement of an organism, system, or process.

Psychoanalysis

A therapeutic approach that explores unconscious drives and conflicts, originated by Sigmund Freud.