Absolute advantage is the basis for gains from trade

When firms accuse competitors of predatory pricing, they almost always use as evidence

A) arbitrarily allocated joint costs. B) the disappearance of competitors. C) the profits of their competitors. D) their own losses. E) the gap between price and marginal cost.

Refer to Table 1-4. What is Eva's marginal cost if she decides to stay open for two hours instead of one hour?

A) $12 B) $24 C) $36 D) $71