If the opportunity cost of a table is 5 chairs in Nation A and 1 chair in Nation B,it makes sense for Nation B to produce chairs.

Question

Quizplus · Accepted Answer

Since the opportunity cost of producing a table in Nation B is only 1 chair while it is 5 chairs in Nation A, Nation B has a comparative advantage in producing tables. Therefore, it would make more sense for Nation B to produce tables while Nation A produces chairs.

If the Opportunity Cost of a Table Is 5 Chairs