The Heckscher-Ohlin theorem says that a country is likely to have a comparative advantage in a labor intensive product if it has a large labor supply.

In the above figure, a price of $15 per dozen roses would result in a ________ so that the price of roses will ________

A) surplus; rise B) surplus; fall C) shortage; rise D) shortage; fall

Why can a monopoly earn economic profits in the long run?