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Mason and Chloe Each Produce Two Goods

Question 135

Multiple Choice

Mason and Chloe each produce two goods. According to the principle of comparative advantage, the total output produced by these individuals will be greatest


A) if Chloe produces both goods and Mason produces nothing.
B) if each good is produced by the individual who has the lower opportunity cost of producing that good.
C) if each good is produced by the individual who has the higher absolute cost of producing that good.
D) if Mason produces both goods and Chloe produces nothing.

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