Figure 16-6 -According to Figure 16-6,which of the Following Statements Is Correct

question 53

Multiple Choice

Figure 16-6

-According to Figure 16-6,which of the following statements is correct?

• A)Chile has the both the absolute and comparative advantage in the production of bicycles.
• B)India has both the absolute and comparative advantage in the production of bicycles.
• C)Chile has the absolute advantage in the production of wagons but India has the comparative advantage.
• D)India has the absolute advantage in the production of bicycles but Chile has the comparative advantage.
• E)India has the absolute advantage in the production of wagons but Chile has the comparative advantage.

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Definitions:

Surplus

An excess of production or supply over demand, often resulting in a decrease in prices.

Metering Strategy

A pricing strategy used by firms to charge consumers for the actual use of a service or product.

Profit Margins

The ratio or percentage of profit generated from sales after deducting costs, indicating the financial health and efficiency of a business.

Robinson-Patman Act

A United States federal law that aims to prevent anticompetitive practices by producers, specifically price discrimination.