(Table: Econoland and Macroland Annual Production Capacity in Tons) Based

question 200

Multiple Choice

(Table: Econoland and Macroland Annual Production Capacity in Tons) Based on the table, which statement correctly identifies the reason for Macroland's comparative advantage? $$\begin{array} { | l | l | l | } \hline & \text { Cabbages } & \text { Oranges } \\\hline \text { Econoland } & 50,000 & 40,000 \\\hline \text { Macroland } & 80,000 & 72,000 \\\hline\end{array}$$

• A) Econoland's comparative advantage is in oranges because its opportunity cost per ton of orange (0.9 ton of cabbage) is lower than Macroland's.
• B) Econoland's comparative advantage is in oranges because its opportunity cost per ton of orange (1.11 ton of cabbage) is lower than Macroland's.
• C) Econoland's comparative advantage is in cabbages because its opportunity cost per ton of cabbage (0.8 ton of oranges) is lower than Macroland's.
• D) Econoland's comparative advantage is in cabbages because its opportunity cost per ton of cabbage (1.25 ton of oranges) is lower than Macroland's.

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