If Japan gives up ten bushels of rice to produce one bicycle, while the United States gives up five bushels of rice to produce one bicycle, then:
A. the opportunity cost of producing bicycles in the United States is higher than in Japan.
B. Japan has a comparative advantage in the production of bicycles.
C. total output will be highest if Japan specializes in rice and the United States specializes in bicycles.
D. total output will be highest if the United States specializes in rice and Japan specializes in bicycles.
Answer: C
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