Given freedom of movement for both goods and resources, if Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that
A) the opportunity cost of growing oranges is higher in Florida than in Georgia.
B) Georgia has a comparative advantage in producing oranges.
C) Florida has a comparative advantage in producing oranges.
D) total output will be expanded when Georgia allocates more resources to producing oranges and Florida allocates more resources to producing peaches.

Question

Quizplus · Accepted Answer

Florida specializing in oranges suggests it has a comparative advantage in producing them, meaning it can produce oranges at a lower opportunity cost than Georgia.

Given Freedom of Movement for Both Goods and Resources, If