If the United States produces computers at a lower opportunity cost than does Germany, then the total output of computers would rise if the United States exported them to Germany.

Question

Quizplus · Accepted Answer

This is because the United States has a comparative advantage in producing computers, meaning that it can produce them at a lower opportunity cost compared to Germany. If the United States exports computers to Germany, Germany can specialize in producing goods that it has a comparative advantage in, resulting in an increase in the total output of both countries.

If the United States Produces Computers at a Lower Opportunity