Mike has a linear production possibilities frontier that shows
maximum production of trucks or computers of 10 million each. Debra
also has a linear production possibilities curve that shows maximum
production of 9 million trucks or 3 million computers.
Based on the graphs, which of the following statements is
true?
|
Debra has an absolute advantage in the production of
computers. |
|
Debra has an absolute advantage in the production of
trucks. |
|
Debra has an absolute advantage in the production of
computers. |
|
Mike has a comparative advantage in the production of
computers. |