Sweden and Denmark both produce salted cod and automobiles with constant opportunity costs. Sweden will have a comparative advantage in salted cod if:
A) it can produce more salted cod than Denmark.
B) its labor productivity in salted cod production is greater than Denmark's.
C) the absolute cost of producing salted cod is lower in Sweden than in Denmark.
D) the opportunity cost of salted cod production is lower in Sweden than in Denmark.
Correct Answer:
Verified
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