Jane produces only corn and cloth. The land that she allocates to corn:

Jane produces only corn and cloth. The land that she allocates to corn:




A) may have an absolute advantage for cloth, but nonetheless has a comparative advantage for corn.
B) may have neither an absolute nor a comparative advantage for corn.
C) must have both an absolute and a comparative advantage for corn.
D) may have a comparative advantage for cloth, but nonetheless has an absolute advantage for corn.


Answer: A


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