1. If France can make 25 pounds of butter or 5 lamps while Spain can make...

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1. If France can make 25 pounds of butter or 5 lamps while Spain can make 6 pounds of butter or 1 lamp, who has the comparative advantage in which good? A. France has the comparative advantage in both butter and lamps. B. Spain has the comparative advantage in both butter and lamps. C. France has the comparative advantage in butter; Spain in lamps. D. Spain has the comparative advantage in butter; France in lamps. E. There is not enough information to say 2. A trade that can make both countries better off would be A. one lamp for 7 pounds of butter. B. one lamp for 6.5 pounds of butter. C. one lamp for 6 pounds of butter. D. one lamp for 5.5 pounds of butter. E. No such trade exists. This is a schedule of the marginal benefits and marginal costs for product "X" Quantity MB MC 1 $20 $12 2 $15 $13 3 $9 $14 4 $3 $15 3. Use the marginal principle to predict how much X will be consumed A. 5 B. 4 C. 3 D. 2 E. 1 5 $0 $16 4. If those benefits and costs are yours, how much would you be willing to pay for a pass that would let you consume all the X you wanted? A. $8 B. $15 C. $33 D. $47 E. $17 5. If they charge you $12 for an "all you can consume" pass, how many will you consume? A. None, as it is not worth paying that price given the benefits. B. 1 C. 3 D. 4 E. at least 5. 1. If France can make 25 pounds of butter or 5 lamps while Spain can make 6 pounds of butter or 1 lamp, who has the comparative advantage in which good? A. France has the comparative advantage in both butter and lamps. B. Spain has the comparative advantage in both butter and lamps. C. France has the comparative advantage in butter; Spain in lamps. D. Spain has the comparative advantage in butter; France in lamps. E. There is not enough information to say 2. A trade that can make both countries better off would be A. one lamp for 7 pounds of butter. B. one lamp for 6.5 pounds of butter. C. one lamp for 6 pounds of butter. D. one lamp for 5.5 pounds of butter. E. No such trade exists. This is a schedule of the marginal benefits and marginal costs for product "X" Quantity MB MC 1 $20 $12 2 $15 $13 3 $9 $14 4 $3 $15 3. Use the marginal principle to predict how much X will be consumed A. 5 B. 4 C. 3 D. 2 E. 1 5 $0 $16 4. If those benefits and costs are yours, how much would you be willing to pay for a pass that would let you consume all the X you wanted? A. $8 B. $15 C. $33 D. $47 E. $17 5. If they charge you $12 for an "all you can consume" pass, how many will you consume? A. None, as it is not worth paying that price given the benefits. B. 1 C. 3 D. 4 E. at least 5.

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The detailed answer for the above question is provided below A France has the comparative advantage in both butter and lamps France has a comparative advantage in butter because it can produce more bu... View the full answer