Refer to the figure Mutually Beneficial Trade II. The figure shows the production possibility frontier (PPF) for producing tennis rackets and tennis balls in Stewarton and Colberton. If both countries have identical resources, then Colberton has a comparative advantage in tennis _____ and has an absolute advantage in:
Figure: Mutually Beneficial Trade II
A) rackets; neither good.
B) rackets; both goods.
C) balls; neither good.
D) balls; both goods.
Correct Answer:
Verified
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