Country A can produce either 10 bikes or 40 pairs of inline skates with one resource unit. Country B can produce either 20 bikes or 30 pairs of inline skates with one resource unit. Which of the following statements is TRUE?
A) Country A has the comparative advantage in the production of inline skates.
B) Country B does not have a comparative advantage.
C) It does not make economic sense for Countries A and B to trade.
D) Country A should trade its bikes for Country B's inline skates.
Correct Answer:
Verified
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