The United States and China can produce TVs at $200 and 2000 yuan each. One day of labor is needed to produce a TV in the United States and 10 days of labor are needed to produce a TV in China. Each country also produces the nontraded good, car washing. In each country, one car can be washed in one day. The exchange rate is 10 yuan = $1. What is the price of a car wash in the United States?
A) $200
B) $100
C) $50
D) $10
Correct Answer:
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