hw4 - Spring2011ECON4633001: DueDate:Apr.18,2011...

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International Trade Spring 2011 ECON4633-001: Due Date: Apr. 18, 2011 Assignment 4 Name: __________________________ Date: _____________ 1. A differentiated product is one that: A) is slightly different from the competitor's product, although is a close substitute. B) is very different. C) is traded within firms and is not for sale in retail markets. D) has a shelf life of less than 1 year. 2. Increasing returns to scale occur when a firm's: A) average costs of production increase as its output increases. B) average costs of production decrease as its output increases. C) average fixed costs increase as its output increases. D) marginal costs increase as its output increases. 3. “Intra-industry trade” refers to: A) imports and exports within the same industry. B) imports and exports originating in different industries. C) international trade patterns predicted by the Heckscher-Ohlin model. D) Ricardian comparative advantage. 4. A firm's average costs will be falling whenever its: A) Marginal costs are positive. B) Marginal costs are negative. C) Marginal costs are less than average costs. D) Marginal costs are less than fixed costs. Page 1
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5. Firm X's total fixed costs are $1,000. Its total variable costs of producing 100 units are $2,000, and its total variable costs of producing 200 units are $4,000. Firm X's average costs experiences which of the following as it increases output from 100 to 200 units? A) Average costs increase. B) Average costs decrease. C)
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This note was uploaded on 04/18/2011 for the course ECON 4633 taught by Professor Jingpinggu during the Spring '11 term at Arkansas.

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hw4 - Spring2011ECON4633001: DueDate:Apr.18,2011...

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