In the United States, Texas ranks number one in the amount of installed megawatts for wind power generation and Florida ranks number one in the number of beach vacations. These facts point out that
A) Texas definitely has an absolute advantage in wind power generation.
B) Florida should produce more wind energy.
C) Texas has a comparative advantage in wind power generation.
D) Florida can produce wind energy at a lower opportunity cost than can Texas.

Question

Quizplus · Accepted Answer

The fact that Texas has the most installed megawatts for wind power generation indicates that Texas has a comparative advantage in producing wind energy compared to other states. This means that Texas can produce wind energy at a lower opportunity cost than other states. The fact that Florida ranks number one in beach vacations is not related to wind energy production and therefore does not provide any information about their comparative advantage in wind energy.

In the United States, Texas Ranks Number One in the Amount