Imagine two countries with identical endowments of resources. Using all its resources, Broland can produce 5,000 books or 8,000 forks. Using the same resources, Nomia can produce 4,000 books or 7,000 forks. Which country has a comparative advantage producing books?
A) Broland, because it gives up 0.63 fork for each book produced
B) Nomia, because it gives up 0.57 fork for each book produced
C) Broland, because it gives up 1.6 forks for each book produced
D) Nomia, because it gives up 1.75 forks for each book produced
Correct Answer:
Verified
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