Missouri can produce 10,000 tons of pecans per year or 5,000 tons of pears per year. Washington can produce 12,000 tons of pecans per year or 48,000 tons of pears per year. Which of the following statements is true?
A) Washington has an absolute advantage in the production of both pecans and pears.
B) Washington has a comparative advantage in producing pecans and Missouri has a comparative advantage in producing pears.
C) Washington has a comparative advantage in the production of both pecans and pears.
D) Both answers A and C are correct.
Correct Answer:
Verified
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