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

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Comparative advantage refers to a country's ability to produce a good or service at a lower opportunity cost than another country. In this case, Germany has a lower opportunity cost of producing beer since it can produce beer for 3 pizzas each ($21/$7), compared to the U.S. that can produce beer for 5 pizzas each ($25/$5). Therefore, Germany has a comparative advantage in the production of beer.

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