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-Agnes Can Produce Either 1 Unit of X or 1

Question 287

Multiple Choice

 U.S. production  possibilities  France’s production  possibilities  Steel 10025 Concrete 200100\begin{array} { | l | c | c | } \hline & \begin{array} { c } \text { U.S. production } \\\text { possibilities }\end{array} & \begin{array} { l } \text { France's production } \\\text { possibilities }\end{array} \\\hline \text { Steel } & 100 & 25 \\\hline \text { Concrete } & 200 & 100 \\\hline\end{array}
-Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.


A) Brenda cannot gain from trade.
B) Brenda has an absolute advantage in the production of X and Y.
C) Agnes has a comparative advantage in the production of Y.
D) Brenda has a comparative advantage in the production of X.

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