Given an opportunity cost of 10 bicycles per 1 sewing machine in Germany and 20 bicycles per 2 sewing machines in Hungary,
A) Neither country has a comparative advantage in the production of either good.
B) Germany has a comparative advantage in the production of sewing machines.
C) Germany has an absolute advantage in the production of sewing machines.
D) Hungary has an absolute advantage in the production of bicycles.
E) Hungary produces more bicycles than Germany does.
Correct Answer:
Verified
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