The word to fill the blank space is "Cost".
The cost of universal trade are borne by those organizations and their specialists whose employments are threatened by foreign competitions. Some residential organizations may lose piece of the overall industry to outside organizations, hindering their productivity and capacity to make employments. Other firms may confront so much foreign competition that they're driven bankrupt altogether.
Answer:
In that case, Patricia:
is still liable to pay the additional 10%.
Explanation:
The 10% price increase was preceded by an agreement between the two parties. Patricia is bound to honor her agreements with her business partner to sustain the business relationship. Refusing to pay a debt just by a change of mind does not repudiate the contract. Nancy can enforce the agreement in the court for specific performance of the contract because this additional agreement simply modifies the earlier contract and remains enforceable.
Answer: In a market with positive externalities, <u>"C. the efficient level of production is more than what competition will obtain.".</u>
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Explanation: An externality is a situation in which the costs or benefits of production or consumption of some good or service are not reflected in its market price. A positive externality is the positive effect of an activity imposed by an unrelated third party.
Answer:
C) wages and prices are often inflexible in the downward direction.
Explanation:
Even economists that believe in neoclassicism understand now that wages and prices are sticky. This means that even though economists used to believe that people would willingly accept a pay cut, they were completely wrong. Not a single person in the whole world is willing to accept cut without putting a fight for it. There are CEOs that say that their salary is only $1 per year, but their bonuses are $50 million.
Just imagine if your boss one day decides that since he wants to earn a higher profit, he will just lower your salary. Now you can relate your own personal experience with the experience of 150 million Americans, or 800 million Chinese, Japanese, Mexicans, etc., it's the same everywhere.
Something similar happens to prices, but with a little less drama. Many companies cannot simply decide one day to lower their price because their costs aren't lowered just because they them to. Net income is the equivalent of a company's salary, and even companies will not accept a pay cut.
B. FDA (Food and Drug Administration)
