The country Autarka does not allow international trade. In Autarka, you can buy a wool suit for 3 ounces of gold. Meanwhile, in neighboring countries, you can buy the same suit for 2 ounces of gold. This suggests that
a. Autarka does not have a comparative advantage in producing suits and would become a suit importer if it opened up trade.
b. Autarka has a comparative advantage in producing suits and would become a suit importer if it opened up trade.
c. Autarka does not have a comparative advantage in producing suits and would become a suit exporter if it opened up trade.
d. Autarka has a comparative advantage in producing suits and would become a suit exporter if it opened up trade.
Ans: a. Autarka does not have a comparative advantage in producing suits and would become a suit importer if it opened up trade.
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