Multiple Choice
Table 3-1
-Refer to Table 3-1. Which of the following is correct?
A) The Farmer has an absolute advantage in potatoes, and the Rancher has a comparative advantage in meat.
B) The Farmer has an absolute advantage in meat, and the Rancher has a comparative advantage in potatoes.
C) The Farmer has an absolute advantage in neither good, and the Rancher has a comparative advantage in potatoes.
D) The Farmer has an absolute advantage in neither good, and the Rancher has a comparative advantage in meat.
Correct Answer:
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