Refer to the table above. The farmer began to experience diminishing returns after applying how many bags of fertilizer?

Which of the following would cause a firm's LRAC curve to shift up?

A) An increase in the amount of "learning by doing." B) An increase in the price of labor, all else constant. C) An increase in the amount of output produced by the firm. D) A decrease in the amount of capital employed by the firm.

iPods are less expensive in Canada than the United States, once the exchange rate is taken into account. This is an indication that

A) the nominal exchange rate is equal to one. B) purchasing power parity does not hold. C) the law of one price holds. D) the exchange rate is fixed.