If the world price of apples is higher than Argentina's domestic price of apples without trade,then Argentina
A)should import apples.
B)has a comparative advantage in apples.
C)should produce just enough apples to meet its domestic demand.
D)should refrain altogether from producing apples.

Question

Quizplus · Accepted Answer

If the world price is higher than Argentina's domestic price, it indicates that Argentina can produce apples at a lower cost than the world market, suggesting a comparative advantage in apple production.

If the World Price of Apples Is Higher Than Argentina's