If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then Germany has
A) a comparative advantage in the production of beer.
B) an absolute advantage in the production of beer.
C) a comparative advantage in the production of pizza.
D) a comparative advantage in the production of beer and pizza.
Correct Answer:
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