If, with one unit of labor, the U.S. can produce 20 units of computer software and 10 units of computer hardware, and China can produce 5 units of software and 5 units of hardware, then

A. the United States has a comparative and absolute advantage in both goods.
B. China has a comparative advantage in hardware and the U.S. has a comparative advantage in software.
C. the United States has a comparative advantage in both goods.
D. China has a comparative and absolute advantage in both goods.


Answer: B

Economics

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