Multiple Choice
-Agnes can produce either 1 unit of X or 1 unit of Y in an hour, while Brenda can produce either 2 units of X or 4 units of Y in an hour.
A) Brenda cannot gain from trade.
B) Brenda has an absolute advantage in the production of X and Y.
C) Agnes has a comparative advantage in the production of Y.
D) Brenda has a comparative advantage in the production of X.
Correct Answer:

Verified
Correct Answer:
Verified
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