-Refer to the above table. Assuming that opportunity costs are constant, which of the following is a correct statement?
A) The United States has a comparative advantage in TV production.
B) The United States has a comparative advantage in producing both goods.
C) Mexico has a comparative advantage in producing TVs.
D) Mexico has a comparative advantage in producing both goods.

Question

-Refer to the above table. Assuming that opportunity costs are constant, which of the following is a correct statement?
A) The United States has a comparative advantage in TV production. 
B) The United States has a comparative advantage in producing both goods. 
C) Mexico has a comparative advantage in producing TVs. 
D) Mexico has a comparative advantage in producing both goods.

Quizplus · Accepted Answer

Mexico has a comparative advantage in producing TVs if it can produce them at a lower opportunity cost than the United States.

-Refer to the Above Table