Use the following to answer appropriate questions: Table 1 Canada's production possibilities Tons of Steel 15 10 5 0 Airplanes. 0 6420 4 8 12 Table 2 +Mexico's production possibilities Tons of Steel Airplanes 0 2 4 6 (Tables 1 and 2) using above tables we can determine that: Mexico has an absolute advantage over Canada in producing both steel and airplanes. Mexico has a comparative advantage in producing steel. Canada has a comparative advantage in producing airplanes. Canada has an absolute advantage over Mexico in producing both steel and airplanes.

Use the following to answer appropriate questions: Table 1 Canada's production possibilities Tons of Steel 15 10 5 0 Airplanes. 0 6420 4 8 12 Table 2 +Mexico's production possibilities Tons of Steel Airplanes 0 2 4 6 (Tables 1 and 2) using above tables we can determine that: Mexico has an absolute advantage over Canada in producing both steel and airplanes. Mexico has a comparative advantage in producing steel. Canada has a comparative advantage in producing airplanes. Canada has an absolute advantage over Mexico in producing both steel and airplanes.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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