Based on the comparative cost ratios implied in Figure 35.2, it is clear that

A. The United States has a comparative advantage in baseballs and Mexico has a comparative advantage in golf shoes.
B. The United States should specialize in producing golf shoes, and Mexico should specialize in producing baseballs.
C. The United States should import all of its baseballs from Mexico.
D. Mexico should import all of its golf shoes from the United States.


Answer: A

Economics

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