(Table: Econoland and Macroland Annual Production Capacity in Tons) Based on the table, which statement correctly identifies the reason for Macroland's comparative advantage?
A) Econoland's comparative advantage is in oranges because its opportunity cost per ton of orange (0.9 ton of cabbage) is lower than Macroland's.
B) Econoland's comparative advantage is in oranges because its opportunity cost per ton of orange (1.11 ton of cabbage) is lower than Macroland's.
C) Econoland's comparative advantage is in cabbages because its opportunity cost per ton of cabbage (0.8 ton of oranges) is lower than Macroland's.
D) Econoland's comparative advantage is in cabbages because its opportunity cost per ton of cabbage (1.25 ton of oranges) is lower than Macroland's.
Correct Answer:
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