Multiple Choice
Use the following scenario to answer the following questions:
Karl and Jager produce cars and trucks.Karl can produce 10 cars per hour or 5 trucks per hour.Jager can produce 12 cars per hour or 4 trucks per hour.
-Based on the scenario,Karl has
A) a comparative advantage in producing cars,but not trucks.
B) a comparative advantage in producing trucks,but not cars.
C) a comparative advantage in producing both goods.
D) a comparative advantage in producing neither good.
E) no absolute advantage.
Correct Answer:

Verified
Correct Answer:
Verified
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