In a single year,the Netherlands can raise 100 tons of beef or produce 1,000 boxes of tulips.In the same growing season,Belgium can raise 50 tons of beef or produce 750 boxes of tulips.From this information,we know that:

Question

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The concept of comparative advantage suggests that a country should specialize in producing the product in which it has a lower opportunity cost. In this scenario, the opportunity cost of producing 1 ton of beef in the Netherlands is equivalent to producing 10 boxes of tulips (100 tons of beef / 1,000 boxes of tulips), whereas in Belgium, the opportunity cost is equivalent to 15 boxes of tulips (50 tons of beef / 750 boxes of tulips). Therefore, the Netherlands has a lower opportunity cost in producing beef, and Belgium has a lower opportunity cost in producing tulips. Thus, the Netherlands has a comparative advantage in raising beef.

In a Single Year,the Netherlands Can Raise 100 Tons of Beef