Country X and country Y each employ the same quantity of resources to make mobile phones and televisions. The table indicates the output of each item if every resource is devoted to producing that single item. What can be inferred about absolute advantage and comparative advantage? (Country X: televisions 400, mobile phones 200; Country Y: televisions 500, mobile phones 100)
- ACountry X has an absolute advantage in producing mobile phones and a comparative advantage in producing televisions.
- BCountry X has an absolute advantage in producing televisions and a comparative advantage in producing mobile phones.
- CCountry Y has an absolute advantage in producing mobile phones and a comparative advantage in producing televisions.
- DCountry Y has an absolute advantage in producing televisions and a comparative advantage in producing mobile phones.