If country A has a lower opportunity cost of producing cars than country B, then country A has
A) a comparative advantage in car production and country B has an absolute advantage in car production.
B) an absolute advantage in car production.
C) a comparative advantage in car production.
D) an absolute and a comparative advantage in car production.
E) no reason to trade with country B.
Correct Answer:
Verified
Q28: Exhibit 29-3 Q29: Exhibit 29-1 Q30: Exhibit 29-1 Q31: Exhibit 29-1 Q32: Exhibit 29-1 Q34: Exhibit 29-2 Q35: Exhibit 29-1 Q36: Country A and country B both produce Q37: Exhibit 29-2 Q38: Exhibit 29-3 Unlock this Answer For Free Now! View this answer and more for free by performing one of the following actions Scan the QR code to install the App and get 2 free unlocks Unlock quizzes for free by uploading documents![]()
![]()
![]()
![]()
![]()
![]()
![]()
![]()
![]()