-According to the Above Table, If These Two Countries Trade

question 295

Multiple Choice

-According to the above table, if these two countries trade

• A)Mexico should export computers and the United States export bicycles.
• B)the United States should import computers and Mexico should import bicycles.
• C)the United States should export computers and Mexico should export bicycles.
• D)we cannot tell which country should export which good without knowing the amount of labor utilized in each country.

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Definitions:

Oligopoly

A market structure characterized by a small number of firms controlling a large market share, leading to limited competition.

Perfectly Competitive Industry

An industry that meets the criteria for perfect competition, meaning it includes many small firms producing identical products and allows for free entry and exit.

Total Surplus

The sum of consumer surplus and producer surplus in a market; it measures the total benefit to society from the production and consumption of goods and services.

AC

Average Cost, which is the total cost of production divided by the quantity of output produced.