If Spain is capable of producing tapas, soccer balls, or some combination of those two, then it should:

Question

Quizplus · Accepted Answer

Spain should produce the good it has a comparative advantage at producing. This means it should produce the good it can produce at a lower opportunity cost than its trading partners. In this case, it will depend on the opportunity cost of producing tapas versus soccer balls. If the opportunity cost of producing tapas is lower than that of producing soccer balls, then Spain should specialize in producing tapas and trade with other countries for soccer balls. If the opportunity cost of producing soccer balls is lower than that of producing tapas, then Spain should specialize in producing soccer balls and trade with other countries for tapas.

If Spain Is Capable of Producing Tapas, Soccer Balls, or Some