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For Each Watch Denmark Produces,it Gives Up the Opportunity to Produce

Question 92

Multiple Choice

For each watch Denmark produces,it gives up the opportunity to produce 50 pounds of cheese.France can produce two watches at a cost of 150 pounds of cheese.Which of the following is true?


A) Denmark has a comparative advantage in producing both watches and cheese.
B) France has a comparative advantage in producing both watches and cheese.
C) France has the comparative advantage in producing watches.
D) Denmark has the comparative advantage in producing watches.
E) Denmark has the comparative advantage in producing cheese.

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