For country Gamma, the opportunity cost for producing 1 computer is 10 tonnes of steel. For country Beta, the opportunity cost for producing 1 computer is 6 tonnes of steel. Which country has the comparative advantage in the production of steel?

Question

Quizplus · Accepted Answer

Gamma has the comparative advantage in producing steel because it has a higher opportunity cost for producing computers, meaning it sacrifices more steel to produce a computer, indicating it is relatively more efficient at producing steel compared to Beta.

For Country Gamma, the Opportunity Cost for Producing 1 Computer