Consider a world with two countries and two goods. Under which of the following conditions does comparative advantage NOT exist?
A. One country has more productive resources or inputs than another country.
B. The opportunity cost of producing each good is the same in each country.
C. One country has an absolute advantage in producing one good while the other country has an absolute advantage in producing the other good.
D. One country can produce both goods more cheaply than the other country.
Answer: B
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