Suppose China can produce either 600 telephones or 400 DVD players, and Japan can produce either 400 telephones or 200 DVD players. Implicitly, China has
A. Both an absolute and a comparative advantage in DVD players.
B. Neither a comparative nor an absolute advantage in DVD players.
C. A comparative but not necessarily an absolute advantage in DVD players.
D. An absolute but not necessarily a comparative advantage in DVD players.
Answer: A
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Indicate whether the statement is true or false
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a. True b. False
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