In which of the following cases should the united states produce more noodles than it wants for its own use and trade some of those noodles to italy in exchange for wine?
a. the opportunity cost of producing a gallon of wine is the same for italy as it is for the united states.
b. the united states has an absolute advantage over italy in producing noodles.
c. americans know less than italians know about cooking noodles.
d. italy has a comparative advantage over the united states in producing wine.

Assume that a local bank sells two services, checking accounts and atm card services. the bank’s only two customers are mr. donethat and ms. beenthere. mr. donethat is willing to pay $8 a month for the bank to service his checking account and $2 a month for unlimited use of his atm card. ms. beenthere is willing to pay only $5 for a checking account, but is willing to pay $9 for unlimited use of her atm card. assume that the bank can provide each of these services at zero marginal cost. refer to scenario 17-5. if the bank is unable to use tying, what is the profit-maximizing price to charge for a checking account