The opportunity cost of producing one ton of wheat for Country Gamma is 4 tons of corn. The opportunity cost of producing one ton of wheat for Country Beta is 8 tons of corn. Which country has the comparative advantage in the production of wheat?
A) Gamma
B) Beta
C) Neither country has a comparative advantage.
D) Both countries have the comparative advantage.

Question

Quizplus · Accepted Answer

Country Gamma has a comparative advantage in the production of wheat because it has a lower opportunity cost (4 tons of corn) compared to Country Beta (8 tons of corn).

The Opportunity Cost of Producing One Ton of Wheat for Country