Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.Which of the following statements can be said of Country A? Country A:
A)has the comparative advantage in car production only.
B)has the comparative advantage in truck production only.
C)has the comparative advantage in car and truck production.
D)does not possess the comparative advantage in either good.

Question

Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.Which of the following statements can be said of Country A? Country A:
A)has the comparative advantage in car production only. 
B)has the comparative advantage in truck production only. 
C)has the comparative advantage in car and truck production. 
D)does not possess the comparative advantage in either good.

Quizplus · Accepted Answer

The Answer of  Refer to the figure shown,which represents the production possibilities frontiers for Countries A and B.Which of the following statements can be said of Country A? Country A:
A)has the comparative advantage in car production only. 
B)has the comparative advantage in truck production only. 
C)has the comparative advantage in car and truck production. 
D)does not possess the comparative advantage in either good.

Refer to the Figure Shown,which Represents the Production Possibilities Frontiers