Suppose that Canada can produce 100 hockey sticks or 10 gallons of maple syrup in a typical workweek,while Germany can produce 90 hockey sticks or 10 gallons of maple syrup in a typical workweek.What can we conclude from these numbers?

Question

Quizplus · Accepted Answer

Comparative advantage refers to the ability of a country to produce a particular good or service at a lower opportunity cost than another country. In this scenario, Canada can produce 100 hockey sticks or 10 gallons of maple syrup, while Germany can produce only 90 hockey sticks or 10 gallons of maple syrup in a week. This means that Canada has a comparative advantage in producing hockey sticks as it can produce more hockey sticks in a week compared to Germany.

Suppose That Canada Can Produce 100 Hockey Sticks or 10