The figure above shows the market for brooms. Which of the following could lead to the production of fewer than 600 brooms?

The key characteristics of a monopolistically competitive market structure include

A) many small (relative to the total market) sellers acting independently. B) barriers to entry are strong. C) all sellers sell a homogeneous product. D) sellers have no incentive to advertise their products.

Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. Based on their production possibilities frontiers, Tom and Jerry:

A. can both benefit from trade because absolute advantage exists. B. cannot benefit from trade because Tom has the absolute advantage in both goods. C. could both benefit from trade because comparative advantage exists. D. will not decide to trade because no comparative advantage exists.