Question

A third country, Funland, also produces food and drinks. In Funland, one resource unit produces 8 tons of food and 6 tons of drinks. Which of the following is true about Funland, Foodland, and Drinkland?
A) Funland has a comparative advantage in producing drinks.
B) Funland has a comparative advantage in producing food.
C) Funland has an absolute advantage in producing food.
D) Funland has an absolute advantage in producing drinks.

Answer

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