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 a comparative advantage in the production of wine.
B) France has a comparative advantage in the production of cars.
C) The USA has an absolute advantage in the production of cars.
D) France has an absolute advantage in the production of wine.
Correct Answer:
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