Suppose production in Spain and Portugal are not subject to the law of increasing cost and that Spain specializes in shoes while Portugal specializes in meat. If the opportunity cost of producing shoes in Spain is 3 meats, then we know that
A) Portugal consumes more meat than shoes
B) Spain consumes more meat than shoes
C) The opportunity cost of producing shoes in Portugal is more than 3 meats
D) The opportunity cost of producing shoes in Portugal is less than 3 meats
E) The opportunity cost of producing meat in Portugal must be 3 shoes
Correct Answer:
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