Which of the following is not a basis for trade between two nations?

Anti-competitive policies are often enforced by government because the public seems to think price cutting by large sellers

A) creates monopolies by reducing competition. B) increases competition among sellers. C) raises prices at the wholesale but not at the retail level. D) reduces the elasticity of margins.

In the figure above, suppose that Mac and Izzie trade and reach point c. Then

A) Mac produces outside his production possibilities frontier. B) Izzie produces outside her production possibilities frontier. C) Mac and Izzie both produce outside their production possibilities frontiers. D) neither Mac nor Izzie produce outside their production possibilities frontiers.