Use the following scenario to answer the next eight questions:
Karl and Pete produce cars and trucks. Karl can produce 10 cars per hour or 5 trucks per hour. Pete can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,which of the following is true?
A) Karl has a comparative advantage in producing cars but not trucks.
B) Karl has a comparative advantage in producing trucks but not cars.
C) Karl has a comparative advantage in producing both goods.
D) Karl has a comparative advantage in producing neither good.
E) Karl does not have any absolute advantage.
Correct Answer:
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