In Lithasia,the opportunity cost of producing a chair is 2 tables and in Barylia,the opportunity cost of producing a chair is 1/2 table.Which of the following statements is true?

Question

Quizplus · Accepted Answer

Barylia has a lower opportunity cost of producing a chair compared to Lithasia, which means that they have a comparative advantage in producing chairs. Therefore, option A is the correct answer. Option B is incorrect because the higher opportunity cost of producing a chair in Lithasia implies a comparative disadvantage in producing chairs. Option C is incorrect because the given information does not provide the opportunity cost of producing tables in each country. Option D is also incorrect because the opportunity cost of producing tables is not given for either country.

In Lithasia,the Opportunity Cost of Producing a Chair Is 2