Use the Accompanying Table to Answer the Following Questions

question 97

Multiple Choice

Use the accompanying table to answer the following questions:
Table 3-6

-Refer to Table 3-6.If England and Spain specialize and trade according to their respective comparative advantages,

• A)all individuals in both countries will benefit.
• B)Spain will specialize in and export bread.
• C)Spain will produce more bread than in the absence of trade.
• D)Spain will produce more cheese than in the absence of trade.

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Definitions:

Average Variable Costs

The total variable costs of production divided by the quantity of output produced.

Demand Changes

Variations in the desire or need for a product or service, influenced by factors like price, income levels, and consumer preferences.

Price

The value that must be exchanged to obtain a good or service.

Quantity

Quantity refers to the amount or number of a material or immaterial good or service.