Based on the figure above, as a result of international trade, U.S. domestic production ________ million T-shirts per year

If total revenue exceeds fixed cost, a firm

A) is making short-run profits. B) should produce in the short run. C) has covered its variable cost. D) may or may not produce in the short run, depending on whether total revenue covers variable cost.

When you specialize in a task that you do best, you are applying the:

a. law of supply. b. law of comparative advantage. c. law of demand. d. law of absolute advantage.