Multiple Choice
Michael can produce the following combinations of X and Y: 10X and 10Y,5X and 15Y,and 0X and 20Y.Vernon can produce the following combinations of X and Y: 100X and 20Y,50X and 30Y,or 0X and 40Y.It follows that
A) Michael has the comparative advantage in producing X and Vernon has the comparative advantage in producing Y.
B) Michael has the comparative advantage in producing Y and Vernon has the comparative advantage in producing X.
C) Neither Michael nor Vernon has a comparative advantage in producing X.
D) Neither Michael nor Vernon has a comparative advantage in producing Y.
E) There is not enough information to answer the question.
Correct Answer:

Verified
Correct Answer:
Verified
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