Multiple Choice
Suppose China can produce either 300 telephones or 200 DVD players,and Japan can produce either 200 telephones or 100 DVD players.Implicitly,Japan has
A) Both an absolute and a comparative advantage in telephones.
B) An absolute but not necessarily a comparative advantage in telephones.
C) A comparative but not necessarily an absolute advantage in telephones.
D) Neither a comparative nor an absolute advantage in telephones.
Correct Answer:
Verified
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