Maximum Feasible Hourly Production Rates for Either

question 202

Multiple Choice

Maximum Feasible Hourly Production Rates for Either
Food or Cloth Using All Available Resources

-Using the data in the above table and assuming constant opportunity costs, it is correct to state that

• A)the United States has a comparative advantage in producing cloth.
• B)Mexico has an absolute advantage in producing both food and cloth.
• C)the United States has a comparative advantage in producing both food and cloth.
• D)Mexico has a comparative advantage in producing cloth.

---

Definitions:

Purely Competitive

A market structure characterized by a large number of small firms, homogenous products, and no single firm having control over the market price.

Wage Rate

The amount of money paid to a worker per unit of time, often expressed as an hourly rate or annual salary.

Profit-Maximizing

The process of adjusting production and sale strategies to achieve the highest possible profit margin.

Purely Competitive

A market structure defined by a large number of sellers offering identical or very similar products, leading to a high level of competition and prices determined by supply and demand.