Ask Question
BusinessBusiness
28 April, 14:53

Suppose that the USA can make 15,000,000 cars or 20,000,000 bottles of wine with one year's worth of labor. France can make 10,000,000 cars or 18,000,000 bottles of wine with one year's worth of labor. From these numbers, we can conclude:

a. The USA has an absolute advantage in the production of cars.

b. The USA has a comparative advantage in the production of wine.

c. France has a comparative advantage in the production of cars.

d. France has an absolute advantage in the production of wine.

+1
Answers (1)
  1. 28 April, 14:55
    0
    Answer: A. The USA has an absolute advantage in the production of cars

    Explanation: Absolute advantage is an economic term, it describes a situation when a producer can produced goods or services than another producer in larger quantity for the same cost of production or the same quantity for lower cost.

    In this scenario USA produced more cars than France with the same labor cost.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose that the USA can make 15,000,000 cars or 20,000,000 bottles of wine with one year's worth of labor. France can make 10,000,000 cars ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which of the following examples demonstrates the law of demand? A) Mary buys fewer Milky Ways at $0.80 per Milky Way after the price of Snickers falls to $0.70 per Snicker. B) After Mark got a raise at work, he bought more cookies at $2.
Answers (1)
A store has a $179.99 item on sale for 25% off, plus an additional 20% off. What is the percentage of savings off on this item?
Answers (1)
When Nestle tried to enter the frozen pizza market to attempt to take market share away from home delivery pizzerias, it learned it couldn't sell its frozen pizzas at the same price customers would pay for delivery.
Answers (1)
Who may enter into written agreement, within 90 days of school opening, to purchase or make payments to an individual or group annuity contract, custodial account or investment authorized under 403b of the internal revenue code for such employee?
Answers (1)
How do the main sectors of education interelate?
Answers (1)
New Questions in Business
Assume that total costs assigned to the setup activity cost pool in March are $120,000 and 100 setups were completed in March. Further, assume that during March machines were setup 20 times to make product X5.
Answers (1)
The accounting cycle starts with a. closing out the periodic accounts. b. recording the transaction based on the information in a source document. c. preparing the financial statements. d. preparing the adjusting entries.
Answers (1)
Ratemakers at ABC Insurance Company calculated the pure premium to be $280 for a risk they were considering insuring. What is the gross rate for this risk, assuming a 30 percent expense ratioA) $364 B) $400 C) $430 D) $520
Answers (1)
When plant assets are purchased as a group in a single transaction for a lump-sum price, the cost of the purchase is allocated among the different types of assets acquired based on their relative market values. true or false
Answers (1)
What are the security and management issues concerning virtual offices, especially hooked up into large virtual networks?
Answers (1)
Home » Business » Suppose that the USA can make 15,000,000 cars or 20,000,000 bottles of wine with one year's worth of labor. France can make 10,000,000 cars or 18,000,000 bottles of wine with one year's worth of labor. From these numbers, we can conclude: a.
Sign Up Forgot Password?