An example of a market failure is a. when there is an increase in gasoline demand and a shortage develops. b. a firm is dumping toxic waste that is making people sick. c. when not everyone who wants to see a major league football game can. d. when the market prices of some vehicles are too high for some buyers.

Suppose portugal has 700 workers and 26,000 units of capital, and france has 18,000 workers and 700 units of capital. technology is identical in both countries. assume that wine is the capital-intensive good and cloth is the labor-intensive good. which of the following statements is correct if the nations start trading with each other? a) wages will increase in portugal.b) rental rates in france will increase.c) wages in france will decrease.d) rental rates in portugal will increase.