If the U.S. can produce wheat at $2 a bushel and corn at $3 bushel, while Canada can produce wheat at $3 a bushel and corn at $4 a bushel, then
A. the U.S. has an absolute advantage at producing both corn and wheat.
B. Canada has an absolute advantage at producing both corn and wheat.
C. the U.S. has an absolute advantage at producing corn, but not wheat.
D. the U.S. has an absolute advantage at producing wheat, but not corn.
A. the U.S. has an absolute advantage at producing both corn and wheat.
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Farmer Fanny sells her crops in a perfectly competitive market. If she produces 500 bushels for total revenue of $2,500 and if harvesting the 501st bushel would raise her total cost from $2,500 to $2,505, her
a. revenue will increase by $10 if she harvests the 501st bushel b. revenue will fall by $5 if she harvests the 501st bushel c. average fixed cost will rise if she harvests the 501st bushel d. profit will fall by $10 if she harvests the 501st bushel e. profit will remain unchanged if she harvests the 501st bushel
Alternate Outputs from One Day's Labor Input: United States: 12 bushels of wheat or 3 yards of textiles. Great Britain: 3 bushels of wheat or 12 yards of textiles. From the data above, the United States
a. has an absolute advantage over Great Britain in the production of textiles. b. has an absolute advantage over Great Britain in the production of wheat. c. has a comparative advantage in the production of textiles d. should export textiles to Great Britain.