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

Question

Quizplus · Accepted Answer

Comparative advantage is determined by who has the lower opportunity cost in producing a good. In this case, for Gamma, the opportunity cost of producing 1 computer is higher (10 tons of steel) compared to Beta (6 tons of steel), meaning Gamma gives up more steel to produce a computer. Therefore, Beta has the comparative advantage in producing computers, implying Gamma has the comparative advantage in producing steel, as it is the only other option given.

For Country Gamma,the Opportunity Cost for Producing 1 Computer Is