Answer the next question on the basis of the data given for two regions, East and West, of a hypothetical world. The nations have the production possibilities for units of food and clothing given below.East Production PossibilitiesWest Production Possibilities ABCD ABCDFood241680Food4530150Clothing04812Clothing051015Which of the following statements about the two nations is correct based on the principle of comparative advantage?
A. West has a comparative advantage in the production of clothing.
B. West should specialize in the production of clothing.
C. East should specialize in the production of food.
D. West has a comparative advantage in the production of food.
Answer: D
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