Suppose workers in Freecia can produce two bushels of rice with the same amount of effort it takes them to produce one memory chip. Workers in Warmia can produce five bushels of rice with the same effort it takes them to produce two memory chips. Which of the following must be true?

A. Warmia has an absolute advantage in producing memory chips.
B. Freecia has a comparative advantage in producing memory chips.
C. Warmia has a comparative advantage in producing memory chips.
D. Freecia has an absolute advantage in producing memory chips.


Answer: B

Economics

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