-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 food.
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

-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 food. 
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 Answer of 
-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 food. 
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.

-Using the Data in the Above Table and Assuming Constant