Exercises for Section 63

1. No, it doesn't necessarily. British exports were large because at the prevailing world price the British makers of wool cloth could do well supplying a lot. The question, like the Indian cotton problem, is what happens to world demand and supply. In fact, had America been outside the British empire (you'll recall that there was a little excitement about the matter in 1776), the demand of Americans for cloth would have been about the same.

3. True. Since General Motors and many of the other companies cannot reasonably take the price of autos as given to them and unalterable by each company's individual actions, there's no sense to "adding up each company's supply curve to make a market supply curve."

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