Refer to Figure 35

question 136

Multiple Choice

Refer to Figure 35.3 for the production possibilities curves for the United States and Mexico. These two curves indicate that

• A) There is no benefit to the United States as a result of trading tomatoes or machinery with Mexico.
• B) Mexico does not have an absolute advantage in the production of either good.
• C) The United States has a comparative advantage in the production of machinery.
• D) Mexico has a comparative advantage in the production of tomatoes.

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Definitions:

Smartphone Manufacturing

The industrial process of designing, producing, and assembling components to create smartphones.

Public Utilities

Organizations that provide essential services to the public, such as water, electricity, natural gas, and telecommunications.

Smartphone Industry

A sector of the technology market focused on the development, production, and sale of smartphones.

Oligopoly

A market structure characterized by a few companies having control over a significant portion of the market share, influencing prices and competition.