Table 3-11
Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate.

-Refer to Table 3-11.Falda has an absolute advantage in the production of
A) wheat.
B) cloth.
C) both goods.
D) neither good.

Question

Table 3-11
Assume that Falda and Varick can switch between producing wheat and producing cloth at a constant rate.
 
-Refer to Table 3-11.Falda has an absolute advantage in the production of
A) wheat. 
B) cloth. 
C) both goods. 
D) neither good.

Quizplus · Accepted Answer

Falda has a lower opportunity cost of producing wheat than cloth, meaning it can produce more wheat with the same resources.

Table 3-11 Assume That Falda and Varick Can Switch Between Producing Wheat