Karl can produce either 10 tons of oranges or 5 tons of apples in a year, while Adam can produce either 5 tons of oranges or 10 tons of apples. Which of the following is true?
a. Adam has an absolute advantage in oranges and a comparative advantage in apples.
b. Karl has an absolute advantage in oranges and a comparative advantage in oranges.
c. Karl has an absolute advantage in both apples

An increase in the demand for corn is more than offset by an increase in its supply. As a result the equilibrium price will:

A. Increase and the equilibrium quantity will decrease B. Increase and the equilibrium quantity will increase C. Decrease and the equilibrium quantity will decrease D. Decrease and the equilibrium quantity will increase

Average variable cost for an information product would

A) first decrease and then increase as quantity increases. B) increase constantly as quantity increases. C) decrease constantly as quantity increases. D) remain constant as quantity increases.