Comparative advantage explains how two nations can benefit from trade.

As a whole, nations are better off after trade and specialization because

A) nations can consume along their production possibilities curve, which is outside of their consumption possibilities curve. B) nations can consume along their consumption possibilities curve, which is inside of their production possibilities curve. C) nations experience an inward shift of their production possibilities curve. D) nations can consume along their consumption possibilities curve, which is outside of their production possibilities curve.

When there are many producers of an identical product and you have perfect and free information about what every seller is charging, eventually every merchant will

A) raise the price of the product in hopes that you will purchase the product from them. B) agree to charge a high price for the product so each will be able to earn high profits. C) charge the same price for the product, and the price will be just enough to cover costs. D) discontinue selling the product since there is so much competition.