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Suppose a Producer Requires a Smaller Quantity of Inputs to Produce

Question 193

Multiple Choice

Suppose a producer requires a smaller quantity of inputs to produce carrots than to produce onions. Is this information sufficient to determine in which good the producer has a comparative advantage?


A) Yes, the producer has a comparative advantage in carrots.
B) Yes, the producer has a comparative advantage in onions.
C) No, because information about the costs of inputs is missing.
D) No, because information about other producers is missing.

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