In absolute value, the tax multiplier is greater than the government purchases multiplier

The Shipbreakers of Alang utilize much labor and little capital, thereby supporting the applicability of the

A) factor proportions explanation of the sources of comparative advantage. B) specific factor theory of comparative advantage. C) monopolistic competition theory of comparative advantage. D) scale economies theory of comparative advantage. E) basis of the non-dumping legislation.

Using the above figure, the perfectly competitive firm should shut down if the market price is below

A) P1. B) P2. C) P3. D) P4.