Fab Tools Inc.can produce 150 widgets and 100 axes in a month.Another company AllMyTools Inc.can produce 80 widgets and 50 axes per month.Which of the following statements is true?
A) Fab Tools has an absolute advantage in production of both goods.
B) AllMyTools has an absolute advantage in production of both goods.
C) AllMyTools has a comparative advantage in production of axes.
D) Fab Tools has a comparative advantage in production of widgets only.
Correct Answer:
Verified
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