Refer to Figure 4.8. How many stable Nash equilibrium points are there in this game?

A firm has the following production function:

q = (L1/3 + K1/3)3 a. Determine the returns to scale for this function. b. Determine the MRTS. c. Determine the Elasticity of Substitution.

Suppose the production possibilities for two countries, producing either food or clothing, are shown in the above figure. They can each produce any linear combination as well. Once free trade is allowed, Canada will produce

A) no clothing. B) 10 units of clothing. C) 20 units of clothing. D) 5 units of clothing.