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Sagot :
The question is about the comparative advantage. A company may have comparative or absolute advantage.
It can benefit from comparative advantage because it can manufacture such products and sell them to its competitor.
The company will have comparative advantage in producing a good if it takes less resources than its competitors.
There are two types of products which these companies manufacture, Truck parts and Car parts.
The company which can manufacture more Car parts in the lowest time will have the comparative advantage.
The correct answer is Company C, as it requires only 15 per hour to manufacture Car parts.
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