Social Studies, 05.09.2019 18:10, isabellawest2
Country a can produce either 2 tons of cocoa or 4 cars with 10 units of labor a country b can produce either 5 tons of cocoa or 25 cars with 10 units of labor, based on this information which of the following is true
a) country a has an absolute advantage in the production of cocoa, while country b has a comparative advantage in the production of cocoa
b) country a has a comparative advantage in the production of cocoa, while country b has a comparative advantage in the production of cars
c) country a has an absolute advantage in the production of cocoa. while country an has a comparative advantage in the production of cars
Answers: 1
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