-The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table
A) France has a comparative advantage in the production of concrete.
B) the United States has a comparative advantage in the production of concrete.
C) France has an absolute advantage in the production of concrete.
D) the United States has a comparative advantage in the production of both goods.

Question

-The above table shows the tons of steel and concrete that can be produced by the United States and France in an hour. From the data in the table
A) France has a comparative advantage in the production of concrete. 
B) the United States has a comparative advantage in the production of concrete. 
C) France has an absolute advantage in the production of concrete. 
D) the United States has a comparative advantage in the production of both goods.

Quizplus · Accepted Answer

Comparative advantage is determined by the opportunity cost of producing goods. If France has a lower opportunity cost for producing concrete compared to the United States, then France has a comparative advantage in concrete production.

-The Above Table Shows the Tons of Steel and Concrete