2.  In the USA 1 unit of labor can produce 50 cars while in Canada 1 unit of labor can produce 5 cars. The total amount of labor in each country is L = 100. Which one of these statements is correct? A. Canada has comparative advantage on the production of cars. B. The USA has comparative advantage on the production of cars. C. Since their production possibility frontiers are the similar neither country has comparative advantage on the production of cars. D. Not enough information to answer this question.

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