Asked by Nicole Jamison on Jul 07, 2024
Verified
Refer to Scenario 3-1. Which country, if either, has a comparative advantage producing rice? Defend your answer using the numbers given.
Comparative Advantage
An economic principle that refers to the ability of a party to produce a particular good or service at a lower opportunity cost than another.
Rice
A staple grain consumed worldwide, serving as a primary food source for a large portion of the global population.
Pounds
A unit of weight commonly used in the British imperial and United States customary systems, or the currency of the United Kingdom.
- Interpret and work out comparative advantage.
Verified Answer
EP
EnzoTzy PagalJul 10, 2024
Final Answer :
Country A has a comparative advantage producing rice because its opportunity cost is 1/2 of a pound of broccoli and Country B's opportunity cost is 3/4 of a pound of broccoli.
Learning Objectives
- Interpret and work out comparative advantage.