Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Suppose that a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has an absolute advantage in:
A. the production of bananas, but not tomatoes.
B. the production of both bananas and tomatoes.
C. the production of tomatoes, but not bananas.
D. neither good.
C. the production of tomatoes, but not bananas.
Economics
You might also like to view...
Which of the following is TRUE of the price charged by a monopolistically competitive firm at the profit-maximizing level of output?
A) P > MC B) P = MC C) P = MR D) P < AVC
Economics
Typically a mix of informational and persuasive advertising is used for
A) experience goods. B) credence goods. C) credible goods. D) search goods.
Economics