Refer to Figure 3.2. If Wilma plays North and Betty plays East, what is Betty's payout?

The United States is one of the richest nations in the world,

A) so it does not need to trade with poor nations in order to achieve any gains from trade. B) so it might not have a comparative advantage in producing any goods. C) but it can still benefit from specialization and trade. D) so it must have a comparative advantage in the production of all goods. E) so it must have an absolute advantage in the production of all goods.

If a monopolist is maximizing profits, then it is producing an amount of output so that

A) MR = ATC. B) MC = AVC. C) MR = TC. D) MR = MC.