Figure 34-7
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In Figure 34-7, AB represents the production possibilities of Pestoland and CD that of Pastaland. In this graph, Pestoland has a comparative advantage in
A. pasta because OA/OB < OC/OD.
B. pesto because OA/OB < OC/OD.
C. pasta because OA/OB > OC/OD.
D. pesto because OA/OB > OC/OD.
Answer: A
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