Before the north american free trade agreement (nafta) gradually eliminated import tariffs on goods, the autarky price of tomatoes in mexico was below the world price and in the united states was above the world price. similarly, the autarky price of poultry in mexico was above the world price and in the united states was below the world price. as a result of nafta, the united states now imports tomatoes from mexico and the united states now exports poultry to mexico. how would you expect the following groups to be affected? mexican and u. s. consumers of tomatoes a. consumer surplus increases in both mexico and the united states. b. consumer surplus increases in mexico and decreases in the united states. c. consumer surplus decreases in both mexico and the united states. d. consumer surplus decreases in mexico and increases in the united states.

Cadbury has a chocolate factory in dunedin, new zealand. for easter, it makes two kinds of “easter eggs”: milk chocolate and dark chocolate. it cycles between producing milk and dark chocolate eggs. the table below provides data on these two products. demand (lbs per hour) milk: 500 dark: 200 switchover time (minutes) milk: 60 dark: 30 production rate per hour milk: 800 dark: 800 for example, it takes 30 minutes to switch production from milk to dark chocolate. demand for milk chocolate is higher (500lbs per hour versus 200 lbs per hour), but the line produces them at the same rate (when operating): 800 lbs per hour. a : suppose cadbury produces 2,334lbs milk chocolate and 1,652 lbs of dark chocolate in each cycle. what would be the maximum inventory (lbs) of milk chocolate? b : how many lbs of milk and dark chocolate should be produced with each cycle so as to satisfy demand while minimizing inventory?