The kinked demand curve model is based on the assumption that rival firms will match a price cut but ignore a price increase

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

A tax system in which the tax rate on everyone's first $10,000 of income is 10 percent, the tax rate on everyone's second $10,000 of income is 15 percent, and the tax rate on all income over $20,000 is 25 percent is a(n):

A. proportional tax. B. equitable tax. C. progressive tax. D. unit tax.