Suppose an American Worker Can Make 100 Nets or Catch

question 149

Multiple Choice

Suppose an American worker can make 100 nets or catch 1,000 fish per day. A Chilean worker, on the other hand, can produce 40 nets or catch 400 fish per day. Which of the following statements is true?

• A) The United States has a comparative advantage at producing nets.
• B) Chile has a comparative advantage at producing nets.
• C) Both the United States and Chile have a comparative advantage at producing nets.
• D) Neither the United States nor Chile has a comparative advantage at producing nets.

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