Ecuador has a comparative advantage in the production of bananas over the United States. Which of the following statements is true?
(A) Ecuador can produce bananas at a lower opportunity cost than the United States.
(B) Ecuador also has an absolute advantage in the production of bananas.
(C) The United States has an absolute advantage in the production of bananas.
(D) The United States cannot produce bananas.
Ans: (A) Ecuador can produce bananas at a lower opportunity cost than the United States.
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