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Suppose a Producer Can Produce Shirts with Lower Opportunity Cost

Question 54

Multiple Choice

Suppose a producer can produce shirts with lower opportunity cost than jeans. What else do we need to know if we want to determine this producer's comparative advantage?


A) how this producer's opportunity cost compares with other producer's opportunity cost
B) nothing, the producer has a comparative advantage in jeans.
C) how many hours of work each product requires
D) nothing, the producer has a comparative advantage in shirts

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