Mexico is capable of producing 20 auto tires or 16 microcircuits per labor hour.Brazil is capable of producing 24 auto tires or 24 microcircuits per labor hour.Based on this information,we can conclude that:
A)Brazil has an absolute advantage in both goods.
B)Brazil will export both goods to Mexico.
C)Mexico has a comparative advantage in microcircuits.
D)Mexico has a comparative advantage in tires.
E)Mexico will import tires from Brazil.

Question

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The Answer of Mexico is capable of producing 20 auto tires or 16 microcircuits per labor hour.Brazil is capable of producing 24 auto tires or 24 microcircuits per labor hour.Based on this information,we can conclude that:
A)Brazil has an absolute advantage in both goods.
B)Brazil will export both goods to Mexico.
C)Mexico has a comparative advantage in microcircuits.
D)Mexico has a comparative advantage in tires.
E)Mexico will import tires from Brazil.

Mexico Is Capable of Producing 20 Auto Tires or 16