Assume that Nation X can produce either 40 notepads or 80 pens, and that Nation Y can produce either 10 notepads or 40 pens. This implies that:
A. Nation X has a comparative advantage in producing pens
B. Nation Y has a comparative advantage in producing notepads
C. Nation X has a comparative advantage in producing notepads
D. Nation Y is the high-cost producer of pens
C. Nation X has a comparative advantage in producing notepads
You might also like to view...
Refer to Figure 8.1. If Charla and Mirna agree to pay each other $350 to install the pollution-control device on their heating systems, the dominant strategy for the players would be for Charla to play ________ and for Mirna to play ________
A) Install; Install B) Install; Don't Install C) Don't Install; Install D) Don't Install; Don't Install
In the above figure, the profit-maximizing output for this single-price monopoly is ________ units and the price is ________
A) 200; $10 B) 300; $20 C) 500; $50 D) 200; $30 E) 300; $30