It takes Melissa eight hours to produce a bushel of corn and two hours to wash and polish a car. It takes Greg six hours to produce a bushel of corn and one hour to wash and polish a car. Therefore:
A) Greg has a comparative advantage in producing corn.
B) Melissa has a comparative advantage in washing cars.
C) Melissa has an absolute advantage in producing corn.
D) Greg has an absolute advantage in washing cars.
Correct Answer:
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