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John Can Make Pizza at a Lower Opportunity Cost Than

Question 48

Multiple Choice

John can make pizza at a lower opportunity cost than Allen, but Allen can make more pizzas per day than John. Therefore,


A) John has a comparative advantage in pizza.
B) John has an absolute advantage in pizza.
C) John cannot benefit from trade with Allen.
D) Allen has a comparative advantage in pizza.
E) Allen cannot benefit from trade with John.

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