For Each Pound of Salami That Hungary Produces,it Gives Up

question 64

Multiple Choice

For each pound of salami that Hungary produces,it gives up the opportunity to make 10 bottles of beer.Slovakia can produce 1 pound of salami for every 8 bottles of beer it produces.Which of the following is true about the comparative advantage between the two countries?

• A)Hungary has the comparative advantage in salami.
• B)Hungary has the comparative advantage in beer.
• C)Slovakia has the comparative advantage in salami and beer.
• D)Slovakia has the comparative advantage in beer.

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