Use the Accompanying Table to Answer the Following Questions

question 72

Multiple Choice

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

-Refer to Table 3-4. If England and Spain specialise and trade according to their respective comparative advantages:

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

---

Definitions:

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and products that are similar, ensuring no single entity can control prices.

Profits

The financial gain achieved when the revenues generated from business activities exceed the expenses, taxes, and costs incurred in operating the business.

Fixed Costs

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance premiums.

Economic Profits

The excess of total revenue over total costs, including both explicit and implicit costs, reflecting the financial gain in terms of opportunity costs.