Table 3-1
Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate.

-Refer to Table 3-1.Andia has a comparative advantage in the production of
A) wheat and Zardia has a comparative advantage in the production of beef.
B) beef and Zardia has a comparative advantage in the production of wheat.
C) both goods and Zardia has a comparative advantage in the production of neither good.
D) neither good and Zardia has a comparative advantage in the production of both goods.

Question

Table 3-1
Assume that Andia and Zardia can switch between producing wheat and producing beef at a constant rate.
 
-Refer to Table 3-1.Andia has a comparative advantage in the production of
A) wheat and Zardia has a comparative advantage in the production of beef. 
B) beef and Zardia has a comparative advantage in the production of wheat. 
C) both goods and Zardia has a comparative advantage in the production of neither good. 
D) neither good and Zardia has a comparative advantage in the production of both goods.

Quizplus · Accepted Answer

Andia has a comparative advantage in beef if it can produce it at a lower opportunity cost than Zardia, while Zardia has a comparative advantage in wheat if it can produce it at a lower opportunity cost than Andia.

Table 3-1 Assume That Andia and Zardia Can Switch Between Producing Wheat