(Figure: The Production Possibilities for Two Countries) Use Figure: The Production Possibilities for Two Countries.Indonesia has a comparative advantage in producing _____,while Malaysia has a comparative advantage in producing _____.

A) both microchips and tires;neither good
B) neither good;both microchips and tires
C) microchips;tires
D) tires;microchips

Comparative Advantage

A principle of economics that allows an entity to produce a good or perform a service at a lower opportunity cost than its competitors.

Microchips

Microchips are small semiconductor devices containing integrated circuits used in a wide range of electronic devices to perform computational or control functions.

Tires

Rubber components mounted on wheel rims, providing traction and absorbing shocks from the road surface for vehicles.