Production of Phones and Chairs Country Phones Chairs United States 10 20 Canada 2 10 Using the data, which of the following statements is correct?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 1E
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Using the data, which of the
following statements is correct?
A. Canada has an absolute
advantage in both chair and
phone production.
B. The United States has an
absolute advantage in chair
production and Canada has
an absolute advantage in
phone production.
C. The United States has an
absolute advantage in both
chair and phone production.
D. Canada has comparative
advantage in both chair and
phone production.
Transcribed Image Text:Using the data, which of the following statements is correct? A. Canada has an absolute advantage in both chair and phone production. B. The United States has an absolute advantage in chair production and Canada has an absolute advantage in phone production. C. The United States has an absolute advantage in both chair and phone production. D. Canada has comparative advantage in both chair and phone production.
Production of Phones and Chairs
Country
Phones
Chairs
United States
10
20
Canada
2
10
Using the data, which of the
following statements is correct?
Transcribed Image Text:Production of Phones and Chairs Country Phones Chairs United States 10 20 Canada 2 10 Using the data, which of the following statements is correct?
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