If the slopes of the production possibility frontiers involving sugar and rice in countries A and B are equal
A) the opportunity cost of producing sugar is less in Country A.
B) the opportunity cost of producing rice is less in Country B.
C) specialization does not benefit either country.
D) each country will produce identical quantities of sugar and rice.

Question

Quizplus · Accepted Answer

When the slopes of the production possibility frontiers (PPFs) are equal between two countries for two goods, it means that the opportunity cost of producing one good in terms of the other is the same in both countries. Therefore, there is no comparative advantage, and specialization would not benefit either country.

If the Slopes of the Production Possibility Frontiers Involving Sugar