-Refer to the Above Table

question 247

Multiple Choice

-Refer to the above table. It may be concluded that

• A)Mexico has a comparative advantage in computer production.
• B)Mexico has a comparative advantage in bicycle production.
• C)The United States has a comparative advantage in producing both goods.
• D)The United States has a comparative advantage in producing neither good.

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Definitions:

Producer Surplus

The difference between the amount sellers are willing to accept for a good or service and the actual amount they receive in the market.

Producing

The act of creating, manufacturing, or generating goods and services that can be offered in a market.

Sells

Engages in the act of offering goods or services in exchange for money or other compensation; a rephrased definition of 'Sellers.'

Highest Amount

The maximum quantity or degree of something that is recorded, attained, or allowed.