Suppose company A can produce shovels for $8 each, axes for $12 each, and rakes for $15 each. Company B can produce shovels for $10 each, axes for $11 each, and rakes for $17 each. Company A sells each item for $5 more than its production cost. Company B sells shovels for $13, axes for $15, and rakes for $18. Which of the following statements is true? A. Company B has a comparative advantage in the production of shovels. B. Company B has a comparative advantage in the production of axes. O C. Company A has a comparative advantage in the production of rakes. D. Company A has a comparative advantage in the production of axes.
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Suppose company A can produce shovels for $8 each, axes for $12 each, and rakes for $15 each. Compan...
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