Multiple Choice

-Suppose Xenia and Zava produce only bread and coffee with their production possibilities schedule shown in Exhibit B-11. Which statement is true?
A) Zava has an absolute advantage in the production of both bread and coffee.
B) Zava has an absolute advantage only in the production of bread.
C) Xenia has an absolute advantage only in the production of bread.
D) Xenia has an absolute advantage only in the production of coffee.
E) Xenia has an absolute advantage in the production of both products.
Correct Answer:
Verified
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