Refer to Figure 8.1. The firm earns zero profit at what output?

How would the market for smartphones be affected if the government charged an excise tax of $5.00 on each smartphone sold?

A) The supply of smartphones would decrease. B) The demand for smartphones would increase. C) The demand for smartphones would decrease. D) The price of smartphones would rise by $5.00.

If the United States can produce both wine and chocolate at a lower resource cost than France,

a. both countries can still benefit from specialization and international trade b. only the United States can benefit from specialization and international trade c. only France can benefit from specialization and international trade d. neither country can benefit from specialization and international trade e. there will be unknown effects of specialization and international trade