Mexico and Canada produce both oil and apples using labour only.A barrel of oil is produced with 4 hours of labour in Mexico and 8 hours of labour in Canada.A bushel of apples is produced with 8 hours of labour in Mexico and 12 hours of labour in Canada.Canada has
A) an absolute advantage in oil production.
B) an absolute advantage in apple production.
C) a comparative advantage in oil production.
D) a comparative advantage in apple production.
E) none of the above.
Correct Answer:
Verified
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