If two countries each produce wool and cotton, the country with the lower opportunity cost for cotton (in terms of wool)will also have

Question

Quizplus · Accepted Answer

The country with the lower opportunity cost for cotton will have a comparative advantage in the production of cotton. This is because they give up less wool for each unit of cotton produced, meaning they can produce cotton at a lower opportunity cost than the other country. This does not necessarily mean they have an absolute advantage in either cotton or wool production.

If Two Countries Each Produce Wool and Cotton, the Country