Let's assume producers in Canada can make 200 units of beef or 50 units of oranges, and U.S. producers can make 50 units of beef or 200 units of oranges per time period. Which country faces the lowest opportunity cost of producing beef?

What happens to the equilibrium price and quantity of automobile tires if rubber prices increase and the price of automobiles falls?

A) The equilibrium price rises, but the change in equilibrium quantity is unknown. B) The equilibrium price and quantity decrease. C) The equilibrium price falls, but the change in equilibrium quantity is unknown. D) The equilibrium price and quantity increase. E) The equilibrium quantity decreases, but the change in equilibrium price is unknown.

Suppose a perfectly competitive industry is in long-run equilibrium. If a decrease in demand leads to a lower long-run price, we know that

A) this is a decreasing-cost industry. B) this is an increasing-cost industry. C) some firms will be losing money in the long run. D) after further adjustments, price will rise to its original level.