Scenario: Consider Two Economies, Beta and Zeta

Multiple Choice

Scenario: Consider two economies, Beta and Zeta. Each farmer in Beta can grow 1,000 pounds of apples or 500 pounds of oranges in a year. Each farmer in Zeta can grow 400 pounds of apples or 1,200 pounds of oranges in a year.
-Refer to the scenario above.Which of the following statements is true in this case?

A) Beta has both comparative and absolute advantage in producing oranges.
B) Zeta has both comparative and absolute advantage in producing oranges.
C) Beta has a comparative advantage in producing oranges and absolute advantage in producing apples.
D) Zeta has a comparative advantage in producing apples and absolute advantage in producing oranges.