Question: Assume a simple model with only two countries: Canada and Italy, and two goods: bacon and sports cars. The table below shows combinations of goods

Assume a simple model with only two countries: Canada and Italy, and two goods: bacon and sports cars. The table below shows combinations of goods that each country could produce using all of its resources. Which nation would benefit from specializing in the production of bacon and trading bacon for sports cars with the other nation? Canada - Bacon Canada - Sports Cars Italy - Bacon Italy - Sports Cars 150 0 90 0 100 25 60 60 50 50 30 120 0 75 0 180 Select the correct answer below: Italy Canada neither nation has a comparative advantage in bacon both nations have a comparative advantage in bacon

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