-According to the above table, if these two countries trade
A)Mexico should specialize in computers and the United States in bicycles.
B)the United States should specialize in both computers and bicycles.
C)the United States should specialize in computers and Mexico should specialize in bicycles.
D)we cannot tell which country should specialize in which good without knowing the amount of labor utilized in each country.

Question

-According to the above table, if these two countries trade
A)Mexico should specialize in computers and the United States in bicycles. 
B)the United States should specialize in both computers and bicycles. 
C)the United States should specialize in computers and Mexico should specialize in bicycles. 
D)we cannot tell which country should specialize in which good without knowing the amount of labor utilized in each country.

Quizplus · Accepted Answer

The United States should specialize in computers and Mexico in bicycles if the opportunity cost of producing computers is lower in the US and the opportunity cost of producing bicycles is lower in Mexico.

-According to the Above Table, If These Two Countries Trade