Figure 3-5 The graph below represents the various combinations of cars and corn that Country A could produce in a given month. (On the vertical axis, corn is measured in bushels.)

-Refer to Figure 3-5.Country A would most likely find itself specializing in corn production if it began trading with Country B and
A)Country A had an absolute advantage over Country B in producing corn.
B)Country B had a comparative advantage over Country A in producing corn.
C)Country B faced an opportunity cost of 20 bushels of corn for every additional car that it produced.
D)Country B faced an opportunity cost of 40 bushels of corn for every additional car that it produced.

Question

Figure 3-5 The graph below represents the various combinations of cars and corn that Country A could produce in a given month. (On the vertical axis, corn is measured in bushels.)
 
-Refer to Figure 3-5.Country A would most likely find itself specializing in corn production if it began trading with Country B and
A)Country A had an absolute advantage over Country B in producing corn. 
B)Country B had a comparative advantage over Country A in producing corn. 
C)Country B faced an opportunity cost of 20 bushels of corn for every additional car that it produced. 
D)Country B faced an opportunity cost of 40 bushels of corn for every additional car that it produced.

Quizplus · Accepted Answer

Country A would specialize in corn production if Country B has a higher opportunity cost for producing corn, as indicated by 40 bushels of corn per car, making it more efficient for Country A to produce corn.

Figure 3-5 the Graph Below Represents the Various Combinations of Cars