If the opportunity cost of 1 wristwatch is 4 wall clocks in Japan and 2 wall clocks in Germany, it makes sense for Japan to produce wristwatches

Which of the following is evidence of a shortage of chocolate?

A) The price of chocolate is raised in order to increase sales. B) Firms lower the price of chocolate. C) The equilibrium price of chocolate falls due to a decrease in demand. D) The quantity of chocolate demanded is greater than the quantity supplied.

What is the aspect of imperfect competition that is most distinct from perfect competition?

A) free entry/exit B) perfect information C) differentiated products D) zero profits