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if canada can produce 1000 apples or 500 oranges. what is the opportunity cost of 1 orange...would that be 2 apples??

if the USA can produce 750 apples or 1875 oranges. what is the opportunity cost of 1 orange...would that be 0.4 apples??

would USA have the comparitave advantage in producing apples then? just looking to clarify my answers.. thanks you!!

2007-03-15 02:46:18 · 2 answers · asked by Anonymous in Social Science Economics

2 answers

Yes! from your level, the USA do hv that C advantage over Canada in respect of the two commodities under consideration but when you proceed technically and factor in other variables, the advantage becomes nonsensical.

2007-03-15 02:56:51 · answer #1 · answered by comradechris 3 · 0 2

1)yes
2)yes
3)No, oranges

2007-03-15 03:08:53 · answer #2 · answered by Anonymous · 0 0

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