Figure 2.7 Figure 2.7 Shows the Production Possibility Frontiers for Pakistan and Possibility

question 19

Multiple Choice

Figure 2.7

Figure 2.7 shows the production possibility frontiers for Pakistan and Indonesia. Each country produces two goods, cotton and cashews.
-Refer to Figure 2.7. Which country has a comparative advantage in the production of cashews?

• A)Indonesia
• B)They have equal productive abilities.
• C)Pakistan
• D)neither country

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Per-unit Costs

The average cost incurred in the production of one unit of a good or service, including both fixed and variable costs.

Number Of Producers

The total count of entities or individuals that manufacture or produce goods and services within an economy.

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