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Omega Can Produce Either Two Microcomputers or Ten TV Sets

Question 14

Multiple Choice

Omega can produce either two microcomputers or ten TV sets.Alpha can produce one microcomputer or five TV sets.Which of the following statements is correct?


A) Alpha has a comparative disadvantage in producing both products
B) Both countries have a comparative advantage in producing microcomputers
C) The countries are unlikely to engage in trade in these two items
D) Labor costs are obviously too high in Alpha
E) All of the above

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