Imagine two countries with identical endowments of resources. Using all its resources, Broland can produce 5,000 books or 8,000 forks. Using the same resources, Nomia could produce 4,000 books or 7,000 forks. Which country has a comparative advantage producing forks?
A) Broland, because it gives up 0.63 of a book for each fork produced
B) Nomia, because it gives up 0.57 of a book for each fork produced
C) Broland, because it gives up 1.6 books for each fork produced
D) Nomia, because it gives up 1.75 books for each fork produced
Correct Answer:
Verified
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