Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year. Country A has 100 workers. Suppose a worker in Country B can make either 2 iPods or 10 tablets each year. Country B has 200 workers. Country B has the comparative advantage in the production of:

For a competitive equilibrium to occur, all of the following has to happen except

A) agents are price takers. B) the government sets taxes at zero. C) markets clear. D) the actions of all agents are consistent.

Answer the following questions true (T) or false (F)

1. In the short run, if price falls below a firm's minimum average total cost, then the firm should shut down. 2. If price is equal to average variable cost, then a perfectly competitive firm breaks even. 3. For a given quantity, the total profit of a perfectly competitive firm is equal to the vertical distance between the firm's total revenue curve and its total cost curve.