If the U.S.can produce pizza for $5 each and barrels of beer for $25 each,and Germany can produce pizza for $7 each and barrels of beer for $21 each,then

Question

Quizplus · Accepted Answer

The U.S. has a lower opportunity cost for producing pizza than Germany, as it only costs $5 each for the U.S. to produce pizza compared to $7 each for Germany. Therefore, the U.S. has a comparative advantage in the production of pizza. It is not possible to determine if the U.S. has an absolute advantage in the production of beer based on the information given.

If the USCan Produce Pizza for $5 Each and Barrels of Beer