George and Peter are two farmers who can produce either apples or oranges. They are deciding who should produce what fruit in order to maximise output.

Apples Oranges (kg/hr) (kg/hr) George 60 48 Peter 54 72 Which of the following statements are true: For George, the opportunity cost of 1 kg of apples is 1.25 kg of oranges. O For Peter, the opportunity cost of of 1 kg of oranges is 0.75 kg of apples. George has a comparative advantage in producing apples. Peter Has an absolute advantage in producing apples