Answer:
c. $150.
Explanation:
the extra amount of hours Maurice can work taking a flight will be of 5 hours
(8 hours taking a plane against 3 hours if driving)
As the income per hour is 30 dollar it can generate;
5 hours x $30 per hour = $150
Maurice will only travel by plane if it generates the same or more income than the driving thus, a differencial price of less than 150 dollars will provide Maurice with a net gain. Also we should consider that if Maurice drives his car it is taking a depreication hit per mile while driving that is being ignoer to keep the assignment simple. But considering that the amount of differential income could be higher than $150
Answer:
fall, rise
Explanation:
US goods will become less expensive
Answer:
Both goods are originally labor intensive, so we can conclude that the country has a lot of labor resources, while their capital resources should be rather limited. Since the world price of good X increases compared to the price of good Y, then the country will export larger amounts of good X since its price is relatively higher.
Answer:
D. is imperfectly competitive, but not all imperfectly competitive markets are monopolistically competitive.
Explanation:
Monopolistic competition may be seen as a variety of competition that determine the characteristics of variety of industries that are familiar to consumers in their day-to-day lives. For instance, restaurants, hair salons, clothing, and consumer electronics are all monopolistic competitive market but not all imperfectly competitive markets are monopolistically competitive.
