QUESTION 25 Table 1 Suppose that you are the executive manager of a multinational company that is located in the US. Your company is interested in expanding its international activities by producing two new products calculators and cigars. It considers two countries: Italy and/or Mexico. Both Italy and Mexico have each 2 units of labor available to produce the two goods, calculators and cigars. Using one unit of labor for the production of each product, Mexico and Italy have the following production/consumption: Output/Man-Day Calculators Cigars Mexico 10 Italy 25 5 15 Refer to the information in Table 1 Total production costs per day are 30 in Italy and 1125 pesos in Mexico. If the exchange rate is 16-10 pesos, then All given choices are correct O Italy has an absolute advantage in the production of cigars O It costs 15 to produce a cigar in Mexico O It costs 12 to produce a calculator in Italy. O Mexico has an absolute advantage in the production of calculators