Country A can produce 9 raincoats or 6 tents with one unit of resources, and Country B can produce 8 raincoats or 8 tents with one unit of resources.
-Based on the principle of comparative advantage, Country B should produce:

Question

Quizplus · Accepted Answer

Country B has a comparative advantage in producing tents because it can produce tents at a lower opportunity cost compared to raincoats. For Country B, the opportunity cost of producing one tent is one raincoat (8 tents = 8 raincoats), whereas for Country A, the opportunity cost of producing one tent is higher (1.5 raincoats for each tent, since 9 raincoats = 6 tents). Therefore, based on the principle of comparative advantage, Country B should specialize in producing tents.

Country a Can Produce 9 Raincoats or 6 Tents with One