Suppose that a worker in Country A can make either 10 iPods or 5 tablets each year.Country A has 100 workers.Suppose a worker in Country B can make either 2 iPods or 10 tablets each year.Country B has 200 workers.Suppose Country B's population of workers increased to 600.We can say:
A) Country B now possesses the absolute advantage in the production of both goods.
B) Country B now possesses the absolute advantage in tablets only.
C) Country B now has the comparative advantage in iPod production.
D) Country B has no need to trade now.
Correct Answer:
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