Scenario: Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples or 500 pounds of oranges in a year. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year.
-Refer to the scenario above.Which of the following statements is true in this case?
A) Beta has a comparative advantage in producing apples.
B) Zeta has an absolute advantage in producing apples.
C) Beta has a comparative advantage in producing oranges.
D) Zeta has a comparative advantage in producing apples.
Correct Answer:
Verified
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