Figure 18.3

-Refer to Figure 18.3. Livonia has a comparative advantage in the production of

Question

Figure 18.3
 
-Refer to Figure 18.3. Livonia has a comparative advantage in the production of

Quizplus · Accepted Answer

Livonia has a comparative advantage in the production of pogo sticks because it can produce them at a lower opportunity cost compared to scooters, as indicated by the relative production possibilities or trade-offs between the two goods. Comparative advantage is determined by which good a country can produce at a lower opportunity cost, not necessarily at a higher volume.

Figure 18.3 -Refer to Figure 18.3. Livonia Has a Comparative Advantage in a Comparative