In the above figure, if the market price is $10, the firm

A dominated strategy

A) may be part of a Nash equilibrium. B) is never played. C) can be a best response. D) is always part of a mixed-strategy Nash equilibrium.

If country X can produce a unit of good 1 at a lower opportunity cost than can country Y, it is correct to state that country X

A) has a comparative advantage in producing good 1. B) has an absolute advantage in producing good 1. C) will import good 1 from country Y. D) will not produce good 1.