Answer each of the following in True-False

1.The firm plans in the short run and operates in the long run.

2.A country will import goods in which it has a comparative advantage and export goods in which it has a comparative disadvantage

3.Monopoly is a market structure in which there is only one buyer of a product for which there are no close substitutes.

4.If a firm in a perfectly competitive industry charges a higher price than that charged by other firms in the industry it will be unable to sell any of its output.

5.An increase in the number of U.S. dollars required to purchase one British pound would be a depreciation of the U.S. dollar and an appreciation of the British pound

6.A monopolist's marginal revenue is below market price

7.The wages paid to the workers employed by a firm are an example of an explicit cost.

8.The quantity of a commodity demanded by a consumer is influenced by the prices of related commodities.

9.If the price elasticity of demand for a firm's output is inelastic, then the firm could increase its revenue by reducing price

10.During a recession, economies experience increased unemployment and a reduced level of activity.