If it takes one country three units of labor to produce a computer and two units of labor to produce a TV but it takes the other country four units of labor to produce a computer and five to produce a TV, then the first country has
A) a comparative advantage in both goods.
B) an absolute advantage in TVs but a comparative advantage in computers.
C) an absolute advantage in TVs and computers but a comparative advantage in computers only.
D) an absolute advantage in TVs and computers but a comparative advantage in TVs only.
Correct Answer:
Verified
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