Bananas Pineapples

Macro 40 20

Micro 10 10

The Macro and Micro islands can produce only Bananas and Pineapples. The table above shows the maximum amount that each nation can produce of the two goods using the same amount of resources. From the table, we can determine that

A. the Macro Islands have an absolute and a comparative advantage in producing bananas.

B. the Macro Islands have an absolute and a comparative advantage in producing pineapples.

C. the Micro Islands have an absolute and a comparative advantage in producing bananas.

D.the Micro Islands have an absolute and a comparative advantage in producing pineapples.

E.the Macro Islands have a comparative advantage in producing pineapples and the Micro Islands have a comparative advantage in producing bananas.