Exhibit 2-10
-Refer to exhibit 2-10. Costa Rica has a comparative advantage in the production of T-shirts.

Question

Exhibit 2-10   
-Refer to exhibit 2-10. Costa Rica has a comparative advantage in the production of T-shirts.

Quizplus · Accepted Answer

Costa Rica has a lower opportunity cost of producing T-shirts compared to the other country, as shown by its lower slope of the production possibility frontier for T-shirts. This indicates that Costa Rica can produce T-shirts at a lower opportunity cost and has a comparative advantage in T-shirt production.