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(Table: Econoland and Macroland Annual Production Capacity in Tons) Based

Question 42

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(Table: Econoland and Macroland Annual Production Capacity in Tons) Based on the table, which statement correctly identifies the situation described therein?  Cabbages  Oranges  Econoland 50,00040,000 Macroland 80,00072,000\begin{array} { | l | l | l | } \hline & \text { Cabbages } & \text { Oranges } \\\hline \text { Econoland } & 50,000 & 40,000 \\\hline \text { Macroland } & 80,000 & 72,000 \\\hline\end{array}


A) Macroland's opportunity cost of producing cabbages is 0.9 ton of oranges and Econoland's is 0.8 ton of oranges, which means Econoland has comparative advantage in cabbage production.
B) Macroland's opportunity cost of producing cabbages is 1.25 tons of oranges and Econoland's is 1.11 tons of oranges, which means Macroland has comparative advantage in cabbage production.
C) Macroland's opportunity cost of producing cabbages is 0.9 ton of oranges and Econoland's is 0.8 ton of oranges, which means Macroland has comparative advantage in cabbage production.
D) Macroland's opportunity cost of producing cabbages is 1.25 tons of oranges and Econoland's is 1.11 tons of oranges, which means Econoland has comparative advantage in cabbage production.

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