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If Canada Can Produce 500 TV Sets at the Cost

Question 62

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If Canada can produce 500 TV sets at the cost of 10 cars,while Mexico can produce 1,000 TV sets at the cost of 8 cars,we know the following:


A) Canada has a comparative advantage in TV production.
B) Mexico has the absolute advantage in TV production.
C) The two countries' joint output equals 1,500 TV sets and 18 cars without trade,but it will be higher after proper specialization and trade.
D) Canada has a comparative advantage in car production.
E) Canada produces more cars than Mexico does.

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