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Suppose That Canada Can Produce 15 Timber or 3 Film

Question 20

Multiple Choice

Suppose that Canada can produce 15 timber or 3 film and Mexico can produce 9 timber or 3 film.Suppose that opportunity costs are constant.Which of the following is FALSE?


A) Canada has an absolute advantage in timber production.
B) Mexico has a comparative advantage in film production.
C) The opportunity costs for producing timber are lower in Canada than in Mexico.
D) Canada and Mexico would find trade mutually advantageous at a ratio of one unit of film to six units of timber.

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