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Suppose America and England are trading partners. America can produce either 10 phones or 5 tablets. England can produce either 9 phones or 3 tablets.
Which of the following is true regarding trade between America and England?
England has an absolute advantage in producing both phones and tablets.
America’s opportunity cost of producing a tablet is 2 phones and they should import tablets.
England has an absolute advantage in phones and should import tablets.
America should produce tablets and import phones.
The opportunity cost of producing a tablet for England is 3 phones and they should export tablets.