Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,Karl has
A) an absolute advantage in producing cars,but not trucks.
B) an absolute advantage in producing trucks,but not cars.
C) an absolute advantage in producing both goods.
D) an absolute advantage in producing neither good.
E) no comparative advantage.
Correct Answer:
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