Exhibit 19-1 Exhibit 19-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts.Lambda has a comparative advantage in coconuts and Beta has a comparative advantage in fish.

Question

Exhibit 19-1  Exhibit 19-1 shows the production possibilities frontiers for the countries of Lambda and Beta for fish and coconuts.Lambda has a comparative advantage in coconuts and Beta has a comparative advantage in fish.

Quizplus · Accepted Answer

The exhibit shows that Lambda has a steeper curve for coconuts, indicating a lower opportunity cost for producing coconuts compared to fish, while Beta has a flatter curve for fish, indicating a lower opportunity cost for producing fish compared to coconuts. This suggests that Lambda has a comparative advantage in producing coconuts and Beta has a comparative advantage in producing fish.

Exhibit 19-1 Exhibit 19-1 Shows the Production Possibilities Frontiers