Trade between two nations can benefit both if each specializes in the good that it can produce at a lower opportunity cost.

Angie is debating whether to take a job as a professional therapist or a florist. She will earn $40,000 a year as a therapist or $25,000 a year as a florist. If she chooses to be a therapist, the economic rent is

A) $40,000. B) $25,000. C) $15,000. D) unable to determine.

Refer to the below graphs. A short-run equilibrium that would produce losses for a monopolistic ally competitive firm would be represented by graph:

A. A
B. B
C. C
D. D