If Ana devotes all her time to making fudge, she can make 3 pounds of fudge an hour, and if she devotes all her time to making toffee, she can make 2 pounds of toffee an hour. If Leo devotes all his time to making fudge, he can make 4 pounds of fudge an hour, and if he devotes all his time to making toffee, he can make 5 pounds of toffee an hour. According to The Principle of Comparative Advantage, Ana and Leo will be able to produce more overall if:
A. the Principle of Comparative Advantage does not hold in this example.
B. both Leo and Ana specialize in fudge.
C. Ana specializes in fudge and Leo specializes in toffee.
D. Leo specializes in fudge and Ana specializes in toffee.
Answer: C
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