The United States imports televisions from Japan and Japan imports computer chips from the United States. If the theory of comparative advantage guides trade between the two countries, it must be true that
A. the United States has comparative advantage in producing computer chips.
B. the opportunity cost of producing computer chips in the United States is higher than that in Japan.
C. the opportunity cost of producing televisions in Japan is higher than that in the United States.
D. the United States has comparative advantage in producing televisions.
Answer: A
Economics
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