Iceland can produce 32 units of food per person per year or 8 units of clothing per person per year, but Lavaland can produce 16 units of food per year or 8 units of clothing. Which of the following is true?
a. Iceland has both a comparative and absolute advantage in producing food

Agreements among competing sellers to maintain prices and share markets

A) are usually unenforceable in court and illegal under many state laws and under federal law where applicable. B) are very common because they lead to economies of scale and hence greater efficiency. C) enable all sellers to cover their sunk costs but do not guarantee that any seller will be able to cover marginal cost. D) usually result in greater total output but also in higher prices to consumers.

As the definition of products narrows (i.e., becomes more specific), the concentration ratio

A) is not valid. B) tends to decrease. C) tends to increase. D) does not change in any predictable manner.