Answer the following question based on the data provided in the tables below for two hypothetical nations, Wat and Xat. The nations have the following production possibilities for rice and corn.Wat's Production Possibilities ABCDEFRice7506004503001500Corn050100150200250Xat's Production Possibilities ABCDEFRice2,5002,0001,5001,0005000Corn0100200300400500Which of the following statements about the two nations is correct based on the principle of comparative advantage?
A. Xat has a comparative advantage in the production of corn.
B. Xat has a comparative advantage in the production of rice.
C. Xat should specialize in the production of corn.
D. Wat should specialize in the production of rice.
Answer: B
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