Multiple Choice
If company A is better than company B at both producing T-shirts and at selling them retail, why might company A contract the first job to company B?
A) Company B has an absolute advantage at producing T-shirts.
B) Company A believes it will benefit from future competition.
C) There is no reason for company to contract out the work.
D) Company B has a comparative advantage at producing T-shirts.
Correct Answer:

Verified
Correct Answer:
Verified
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