Maximum Feasible Hourly Production Rates for Either
Food or Cloth Using All Available Resources

-Using the data in the above table and assuming constant opportunity costs, it is correct to state that
A)the United States has a comparative advantage in producing cloth.
B)Mexico has an absolute advantage in producing both food and cloth.
C)the United States has a comparative advantage in producing both food and cloth.
D)Mexico has a comparative advantage in producing cloth.

Question

Maximum Feasible Hourly Production Rates for Either
Food or Cloth Using All Available Resources
 
-Using the data in the above table and assuming constant opportunity costs, it is correct to state that
A)the United States has a comparative advantage in producing cloth. 
B)Mexico has an absolute advantage in producing both food and cloth. 
C)the United States has a comparative advantage in producing both food and cloth. 
D)Mexico has a comparative advantage in producing cloth.

Quizplus · Accepted Answer

The United States has a comparative advantage in producing cloth because it can produce more cloth per unit of food than Mexico.