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The Domestic Opportunity Cost of Producing 100 Barrels of Chemicals

Question 184

Multiple Choice

The domestic opportunity cost of producing 100 barrels of chemicals in Germany is one ton of steel. In France, the domestic opportunity cost of producing 100 barrels of chemicals is two tons of steel.
In this case,


A) France has a comparative advantage in the production of chemicals.
B) Germany has a comparative advantage in the production of chemicals.
C) France has an absolute advantage in the production of chemicals.
D) Germany has an absolute advantage in the production of chemicals.

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