Suppose that in Slovakia one unit of labor can produce either 16 tons of wheat or 32 tons of soy and in Poland one unit of labor can produce either 4 tons of wheat or 2 tons of soy. Given this information, which of the following statements is true?
A) Slovakia has a comparative advantage in producing neither wheat nor soy.
B) Slovakia has a comparative advantage in producing both wheat and soy.
C) Poland has a comparative advantage in producing soy but not wheat.
D) Poland has a comparative advantage in producing wheat but not soy.
Correct Answer:
Verified
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