If Eddie can produce 40 milk shakes or 20 banana splits in an hour, and Tina can produce 30 milk shakes or 16 banana splits in an hour, then Eddie has a comparative advantage in producing banana splits

Barriers to entry do not occur when:

a. economies of scale in production exist in an industry. b. firms requires a professional license or franchise agreement. c. the firm that introduces a product is granted a patent. d. a firm controls a scarce resource. e. diseconomies of scale in production exist in an industry.

Which of the following observations is true? a. Monopolistically competitive sellers are price takers

b. Monopolistically competitive sellers treat price in the same manner as in perfect competition. c. Monopolistically competitive sellers regard price as a given by market conditions. d. Monopolistically competitive sellers are price makers.