A market that is operating efficientlyO maximizes producer surplus.maximizes total surplus.maximizes consumer surplus.maximizes profit. Suppose Country A can create 200 tons of capital-intensive goods or 200 tons of labor-intensive goods in one day. Suppose Country Bcan produce 80 tons of capital-intensive goods or 160 tons of labor-intensive goods in one day.Country A v has the absolute advantage in the production of capital-intensive goods.has the absolute advantage inthe production of labor-intensive goods.Country A V has the comparative advantage in the production of capital-intensive goods.Country B Vhas the comparativeadvantage in the production of labor-intensive goods.

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A market that is operating efficiently maximizes producer surplus. maximizes total surplus. O maximizes consumer surplus. O maximizes profit.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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