Assume the following conditions: In the United States, it takes 5 units of resources to produce a ton of potatoes and 10 to produce a ton of coal. In Canada, it takes 6 units of resources to produce a ton of potatoes and 9 to produce a ton of coal. According to the theory of absolute advantage, ________.
A) the United States should export potatoes to Canada and import coal from Canada
B) the United States should export coal to Canada and import potatoes from Canada
C) the United States should import both potatoes and coal from Canada, while concentrating on production of more valuable goods
D) there would be no basis for trade
Answer: A
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