Canada and Chile produce both oil and apples using labour only. A barrel of oil can be produced with 4 hours of labour in Canada and 8 hours of labour in Chile. A bushel of apples can be produced with 8 hours of labour in Canada and 12 hours of labour in Chile. Chile has
A) an absolute advantage in producing oil.
B) an absolute advantage in producing apples.
C) a comparative advantage in producing oil.
D) a comparative advantage in producing apples.
E) none of the above.
Correct Answer:
Verified
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