Erbia can produce both corn and wheat using fewer inputs than Glassen; however, Glassen can produce corn at a lower opportunity cost than Erbia. Therefore, we can conclude that Glassen has a comparative advantage in wheat production

An unregulated natural monopolist would produce to the point at which

A) P = AC. B) MR = AC. C) MR = MC. D) P = MR.

The figure below shows the U.S. market for imported wine. For simplicity, we consider export supply curves to be flat. Chilean wine is available for $480 per barrel and French wine is available for $420 per barrel.Suppose the United States has a tariff of $80 per barrel on imported wine. Then, the United States joins a trade bloc with Chile. What is the net effect of joining the trade bloc on U.S. well-being?

A. The national welfare increases by $250 billion. B. The national welfare decreases by $800 million. C. The national welfare increases by $50 million. D. The national welfare decreases by $550 million.