Mexico and Canada Produce Both Oil and Apples Using Labour

Multiple Choice

Mexico and Canada produce both oil and apples using labour only. A barrel of oil can be produced with 8 hours of labour in Mexico and 4 hours of labour in Canada. A bushel of apples can be produced with 12 hours of labour in Mexico and 8 hours of labour in Canada. Mexico has

A) an absolute advantage in producing oil.
B) an absolute advantage in producing apples.
C) a comparative advantage in producing oil.
D) a comparative advantage in producing apples.
E) none of the above.