In a day, Julia can produce 12 bushels of wheat or 4 pounds of meat while Carlos can produce 10 bushels of wheat or 2 pounds of meat. If Julia and Carlos work for a day producing what they have comparative advantage in, which of the following price (P) ranges for a bushel of wheat in terms of pounds of meat incentivize both Julia and Carlos to trade with each other  A           0.20 < P < 0.33 B   3.00 < P < 5.00 C   1.20 < P < 2.00 D   2.50 < P < 6.00

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Comparative Advantage and Absolute Advantage Analysis

The theory of absolute advantage was given by Adam Smith in the year 1776.