-Using the Data in the Above Table and Assuming Constant

question 264

Multiple Choice

-Using the data in the above table and assuming constant opportunity costs, it is correct to state that

• A) the United States has an absolute advantage in producing cloth.
• B) Mexico has a comparative advantage in producing food.
• C) the United States has a comparative advantage in producing both food and cloth.
• D) Mexico has a comparative advantage in producing both food and cloth.