Use the Accompanying Table to Answer the Following Questions

question 23

Multiple Choice

Use the accompanying table to answer the following questions.
Table 3-4

-According to Table 3-4:

• A) England has a comparative advantage in bread, and Spain has an absolute advantage in cheese
• B) England has a comparative advantage in bread, and Spain has an absolute advantage in neither goods
• C) England has a comparative advantage in cheese, and Spain has an absolute advantage in both goods
• D) England has a comparative advantage in both goods, and Spain has an absolute advantage in cheese

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Definitions:

Marginal Revenue Product

The additional revenue generated from using one more unit of a factor of production or input.

Mechanics

The branch of physics that deals with the behavior of physical bodies when subjected to forces or displacements and the subsequent effects of the bodies on their environment.

Profit

The financial gain made in a transaction or through business operations after subtracting all expenses.

Marginal Revenue Product

The extra income produced through the use of an additional unit of a resource, like labor or capital.