The United States and France both produce sweaters and caps. Suppose that a US worker can produce 50 caps per hour or 1 sweater per hour and a French worker can produce 40 caps per hour and 2 sweaters per hour. Based on this scenario, which statement is true?
The United States has a comparative advantage producing caps.
France has a comparative advantage producing caps.
The United States has a comparative advantage producing sweaters.
Neither country has a comparative advantage producing either good.
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