In Canada, the average worker can produce 10 computers or 6 cars a year. In the United States, the average worker can produce 12 computers or 10 cars a year. Thus

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Quizplus · Accepted Answer

Canada has a comparative advantage in the production of computers because it has to give up fewer cars to produce one more computer compared to the United States. For Canada, the opportunity cost of producing one computer is 0.6 cars (6 cars/10 computers), whereas for the United States, it is 0.83 cars (10 cars/12 computers). Comparative advantage is determined by who has the lower opportunity cost in production, not necessarily who can produce more.

In Canada, the Average Worker Can Produce 10 Computers or 6