-Two countries, Blue Violet and Orange Rose, produce only two goods: teapots and coffeepots. The table above gives their production possibilities. ________ has a comparative advantage in teapots and ________ has a comparative advantage in coffeepots.

Question

Quizplus · Accepted Answer

Blue Violet has a comparative advantage in teapots because it sacrifices fewer coffeepots to produce one more teapot compared to Orange Rose. Orange Rose has a comparative advantage in coffeepots because it sacrifices fewer teapots to produce one more coffeepot compared to Blue Violet.

-Two Countries, Blue Violet and Orange Rose, Produce Only Two