Exhibit 17-1
-Exhibit 17-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts.What can you say about comparative advantage from the information in Exhibit 31-9?

Question

Exhibit 17-1 
-Exhibit 17-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts.What can you say about comparative advantage from the information in Exhibit 31-9?

Quizplus · Accepted Answer

Lambda has a comparative advantage in coconuts if it can produce them at a lower opportunity cost than Beta, while Beta has a comparative advantage in fish if it can produce them at a lower opportunity cost than Lambda.

Exhibit 17-1 -Exhibit 17-1 Shows the Production Possibilities Frontiers for the Countries