Refer to the scenario above. What is the net present value of his friend's project?

If a nation specializes in activities in which opportunity costs are the lowest and then trades with other nations, it is most likely to:

a. have a higher standard of living for its citizens than it would if it did not specialize and then trade. b. have a lower standard of living for its citizens than it would if it did not specialize and then trade. c. create as much wealth for its citizens as it could if it did not specialize and then trade. d. benefit in the short run but incur heavy loss in the long run. e. incur heavy loss in the short run and eventually cease production in the long run.

If a price-taking firm selling in a competitive market raises the price of its product above the market-clearing price, it will: a. increase its profits

b. maintain its profit base since the demand for the product is inelastic. c. be able to increase its sales. d. not be able to sell any output.