Country A can produce 50 units of beer or 80 units of pizzas. Country B can produce 100 units of beer or 100 units of pizzas. Which of the following statements is true?

A. Country B has an absolute advantage in both products.
B. Country A has a comparative advantage in pizza and country B has a comparative advantage in beer.
C. Country B has a comparative advantage in pizza and country A has a comparative advantage in beer.
D. A and B.

Ans: D. A and B.

Economics

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