Use the Accompanying Table to Answer the Following Questions

question 36

Multiple Choice

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

-According to Table 3-4:

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

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Definitions:

Marginal Revenue

The additional earnings received from the sale of an extra unit of a good or service.

Competitive Firm

A business operating in a market where it has little to no influence on the prices of its products or services due to the presence of many similar providers.

Average Revenue

Average revenue is the revenue earned per unit of output sold, calculated by dividing total revenue by the total number of units sold.

Fixed Cost

Fixed costs are business expenses that remain constant regardless of the levels of production or sales, such as rent, salaries, or loan payments.