Michael Can Produce the Following Combinations of X and Y

question 15

Multiple Choice

Michael can produce the following combinations of X and Y: 10X and 10Y,5X and 15Y,and 0X and 20Y.Vernon can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.It follows that

• A) Michael has the comparative advantage in producing X and Vernon has the comparative advantage in producing Y.
• B) Michael has the comparative advantage in producing Y and Vernon has the comparative advantage in producing X.
• C) Neither Michael nor Vernon has a comparative advantage in producing X.
• D) Neither Michael nor Vernon has a comparative advantage in producing Y.
• E) There is not enough information to answer the question.

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