Multiple Choice
Below is some hypothetical data for the countries of Canada and Mexico.(Assume that Canada has 10 million workers per month available and Mexico has 20 million. )
Canada's Production Possibilities
(Output in millions of bushels per month)
Mexico's Production Possibilities
(Output in millions of bushels per month)
Output Before Trade
(Output in millions of bushels per month)
-Refer to the information above to answer this question.In what product does Canada and Mexico have a comparative advantage?
A) Neither country has a comparative advantage in either rye or beans.
B) Canada has a comparative advantage in rye but neither country has a comparative advantage in beans.
C) Canada has a comparative advantage in rye and Mexico has a comparative advantage in beans.
D) Canada has a comparative advantage in beans and Mexico has a comparative advantage in rye.
Correct Answer:

Verified
Correct Answer:
Verified
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