For each watch Denmark produces, it gives up the opportunity to make 50 pounds of cheese.Germany can produce one watch for every 100 pounds of cheese it produces.Which of the following is true concerning comparative advantage between the two countries?
A) Denmark has the comparative advantage in watches and cheese.
B) Germany has the comparative advantage in watches and cheese.
C) Germany has the comparative advantage in watches.
D) Denmark has the comparative advantage in watches.
E) Denmark has the comparative advantage in cheese.
Correct Answer:
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