If the opportunity cost of producing wheat in Canada is four buffaloes and the opportunity cost of producing wheat in the U.S. is two buffaloes then we know that
A) Canada has both a comparative advantage and absolute advantage producing wheat
B) Canada has a comparative advantage producing wheat
C) the U.S. has an absolute advantage producing wheat
D) the U.S. has both a comparative advantage and absolute advantage producing wheat
E) the U.S. has a comparative advantage producing wheat
Correct Answer:
Verified
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