For a perfectly competitive firm, marginal revenue product is equal to price minus marginal revenue

An optimizing consumer makes her purchase decisions based on:

A) the total benefits at various levels of consumption. B) benefits per dollar spent at the margin. C) the total benefits per dollar spent at various levels of consumption. D) the benefits from the first dollar spent on consumption.

Suppose that opportunity costs are constant and that Fred can either bake a maximum of six pies or three cakes in a day. Ethel can produce a maximum of eight pies or two cakes in a day. Ethel has an comparative advantage in the production of

A) cakes. B) pies. C) both cakes and pies. D) neither cakes nor pies.