Multiple Choice
Mexico is capable of producing 20 auto tires or 16 microcircuits per labor hour.Brazil is capable of producing 24 auto tires or 24 microcircuits per labor hour.Based on this information,we can conclude that:
A) Brazil has an absolute advantage in both goods.
B) Brazil will export both goods to Mexico.
C) Mexico has a comparative advantage in microcircuits.
D) Mexico has a comparative advantage in tires.
E) Mexico will import tires from Brazil.
Correct Answer:

Verified
Correct Answer:
Verified
Q1: Accounting profit differs from economic profit because:<br>A)
Q3: The average variable cost of producing 1,2,3,and
Q6: Three college students consider the option of
Q7: When average total cost is at its
Q9: A firm's total cost function is: C
Q14: The average fixed cost for a firm<br>A)
Q19: If short-run average cost is increasing then:<br>A)
Q24: Assume that the minimum efficient scale for
Q43: In the short run, if the marginal
Q49: When a firm's production function exhibits constant