Multiple Choice
Assume that Germany and China can produce beer and cloth. If the MPLc/MPLb for Germany is 2/5 and MPLc/MPLb for China is 1, then Germany and China have a comparative advantage in:
A) cloth and beer, respectively.
B) beer and cloth, respectively.
C) beer.
D) cloth.
Correct Answer:
Verified
Correct Answer:
Verified
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