Suppose Aharoni and Kalinga are the only two countries in the world and they produce computers and shoes.Aharoni has 100 workers,and Kalinga has 200 workers.The table below shows the per-day production possibilities for each country.Aharoni has:
Table 19.1:
?
A) an absolute advantage in computers only.
B) an absolute advantage in shoes only.
C) a comparative advantage in computers.
D) a comparative advantage in shoes.
E) neither absolute advantage nor comparative advantage in computers.
Correct Answer:
Verified
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