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In Lithasia, the opportunity cost of producing a chair is two tables and in Barylia, the opportunity ...

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In Lithasia, the opportunity cost of producing a chair is two tables and in Barylia, the opportunity ...

In Lithasia, the opportunity cost of producing a chair is two tables and in Barylia, the opportunity cost of producing a chair is 1/2 table. Which of the following statements is true?
A) Barylia has a comparative advantage in producing chairs.
B) Lithasia has a comparative advantage in producing chairs.
C) Barylia has a comparative advantage in producing tables.
D) Lithasia has a comparative disadvantage in producing tables.

Textbook

Microeconomics

Edition: 1^st

Authors: Acemoglu, Laibson, List

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tuggy Author

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6 years ago

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