If the opportunity cost of producing corn is lower for Ohio than for Iowa, then:

Question

Quizplus · Accepted Answer

If the opportunity cost of producing corn is lower for Ohio, it means that Ohio can produce corn at a lower cost than Iowa. Therefore, Ohio has a comparative advantage at producing corn and should specialize in corn production. Iowa may have a comparative advantage in producing another agricultural product where its opportunity cost is lower. Iowa could export that product to Ohio in exchange for some of Ohio's corn.

If the Opportunity Cost of Producing Corn Is Lower for Ohio