If the opportunity cost of 1 wristwatch is 4 wall clocks in Japan and 2 wall clocks in Germany, it makes sense for Japan to produce wristwatches.

Question

Quizplus · Accepted Answer

Given the opportunity cost, it makes more sense for Germany to produce wristwatches because it has to give up fewer wall clocks (2) compared to Japan (4) to produce one wristwatch, indicating Germany has a comparative advantage in producing wristwatches.

If the Opportunity Cost of 1 Wristwatch Is 4 Wall