Which situation is an example of comparative advantage in an international market? ? Country A decides to grow extra potatoes so they have more to export, while Country B does not grow potatoes to export. ? Factories in Country A and Country B produce the same number of tablet computers. Country A's factories could be used instead to build more laptops than the factories in Country B. ? Country A invests in a new technology while Country B chooses to invest in education. ? Country A can produce 100 units of rice per acre of farmland, while Country B can only produce 70 units of rice per acre of farmland using the same resources.
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According to the theory of comparative advantage, a country should produce and a. import goods in which it has an absolute advantage. b. export goods in which it has an absolute advantage. c. import goods in which it has a comparative advantage. d. export goods in which it has a comparative advantage.
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