Table: Production Possibilities for the United States and Mexico Corn (millions
ID: 1102409 • Letter: T
Question
Table: Production Possibilities for the United States and Mexico Corn (millions of tons) Potatoes (millions of tons) United States Mexico 50 40 10 1. (Table: Production Possibilities for the United States and Mexico) According to the table on production possibilities for the United States and Mexico, Mexico has an absolute advantage in comparative advantage in and a neither good; corn B) corn; potatoes potatoes; corn neither good; potatoes D) (Table: Production Possibilities for the United States and Mexico) According to the table on production possibilities for the United States and Mexico, the United States has an absolute advantage in and a comparative advantage in A) both goods; corn 2. both goods; potatoes C)) potatoes; corn nothing; potatoes 3. (Table: Production Possibilities for the United States and Mexico) According to the table on production possibilities for the potatoes iswhile the United States' opportunity cost of producing each ton of potatoes is A) 0.125 tons of potatoes; 0.2 tons of potatoes B) eight tons of corn; 0.2 tons of potatoes United States and Mexico, Mexico's opportunity cost of producing each ton of eight tons of corn; five tons of corn five tons of com; 0.2 tons of cornExplanation / Answer
1) Mexico has an absolute advantage in neither good (US can produce more of both the goods when all resources are used to produce a particular good)
US opportunity cost of producing 1 ton of potatoes = 50/10 = 5 tons of corn
Mexico's opportunity cost of producing 1 ton of potatoes = 40/5 = 8 tons of corn
Mexico has a comparative advantage in corn and US has a comparative advantage in potatoes
Option A is correct
2) Option B is correct
3) Option C is correct
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