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Read carefully. In Mexico one person can produce 50 pounds of berries or 40 flannels in one year. In Canada one person can produce 40

Read carefully. In Mexico one person can produce 50 pounds of berries or 40 flannels in one year. In Canada one person can produce 40 pounds of berries or 50 flannels in one year. Which of the following statements is true?

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Mexico has an absolute advantage in the production of flannels.

Canada has a comparative advantage in the production of flannels.

Mexico has a comparative advantage in the production of flannels.

Canada has a comparative advantage in the production of berries.

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