If the U.S. can produce pizza for $5 each and barrels of beer for $25

If the U.S. can produce pizza for $5 each and barrels of beer for $25 each, and Germany can produce pizza for $7 each and barrels of beer for $21 each, then

A) each country will produce both pizza and beer.
B) the U.S. will produce beer and trade with Germany for pizza.
C) the U.S. will produce pizza and trade with Germany for beer.
D) All of the above.

 

ANSWER

C

 

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