If the US Can Produce Pizza for $5 Each and Barrels of Barrels

question 4

Multiple Choice

If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then the U.S. has

• A)a comparative advantage in the production of beer.
• B)an absolute advantage in the production of beer.
• C)a comparative advantage in the production of pizza.
• D)a comparative advantage in the production of beer and pizza.

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