-According to the above table, if these two countries trade
A) Mexico should specialize in tablets and the United States in TVs.
B) the United States should specialize in both tablets and TVs.
C) the United States should specialize in tablets and Mexico should specialize in TVs.
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 tablets and the United States in TVs. 
B) the United States should specialize in both tablets and TVs. 
C) the United States should specialize in tablets and Mexico should specialize in TVs. 
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 principle of comparative advantage suggests that each country should specialize in the production of goods for which it has a lower opportunity cost. Without specific data, we infer that the correct specialization would be based on each country's relative efficiency in producing one good over the other.

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