29. Correct. The answer is
true. When Japan faces a supply curve rather than a given world
price, it can minimize its costs of LNG by buying where marginal factor cost is
equal to marginal revenue product but paying the average factor cost. Only if Japan
can price disciminate and charge different suppliers
different prices can it reduce its cost even more. The best case scenario is if
Japan can perfectly price discriminate and pay each supplier their reservation
price.