In oligopoly, the actions of one firm have a perceptible effect on the other firms.

Refer to Table 16.1. Which of the following statements is TRUE?

A) Guatemala has an absolute advantage in producing tomatoes. B) Guatemala has an absolute advantage in producing beer. C) Guatemala has a comparative advantage in producing beer. D) Guatemala has a comparative advantage in producing tomatoes. E) all of the above

The difference between the marginal social cost and the private cost of a common property resource represents:

A) the social discount rate. B) a deadweight loss. C) is generally negative because the people who use the resources assign higher value to them than other members of society. D) the opportunity cost of reducing the resource by one unit for other members of society.