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

Question 49

Multiple Choice

(Table: Econoland and Macroland Annual Production Capacity in Tons) Based on the table, which statement correctly identifies the reason for Macroland's comparative advantage?  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) 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.

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