Question
Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Country B can produce 8 yards of textiles
Country A can produce 10 yards of textiles or 6 pounds of food per unit of input. Country B can produce 8 yards of textiles or 4 pounds of food per unit of input.
| A. | Country A has absolute advantage over Country B in the production of food and textiles but B has the competitive advantage in producing food. |
| B. | Country B has absolute advantage over Country A in the production of food and textiles but A has the competitive advantage in producing food. |
| C. Country B has absolute advantage over Country A in the production of food and textiles but A has the competitive advantage in producing textiles. |
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| D. | Country A has an absolute advantage over Country B in the production of food and textiles but B has the competitive advantage in producing textiles.
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Principles Of Corporate Finance
Authors: Richard Brealey
10th Global Edition
0071314172, 9780071314176
