The available options are:
A) we see countries specializing completely in the production of automobiles.
B) the quality of imported automobiles is less than it could be.
C) different countries may each have a comparative advantage in producing different types of automobiles.
D) consumers of automobiles have difficulty deciding what type of imported automobile to buy.
Answer:
C) different countries may each have a comparative advantage in producing different types of automobiles.
Explanation:
According to the principle of comparative advantage, Automobiles and many other products are differentiated. As a result of "different countries may each have a comparative advantage in producing different types of automobiles."
This is evident in the fact that some countries may have a comparative advantage to produce Trucks than cars, while some may have a comparative advantage in producing caterpillar than Trucks.
This is also similar in a variety of other products. The comparative advantage could be based on raw materials, expertise, climates, etc.
