-Suppose the production possibilities for two countries,producing either food or clothing,are shown in the above figure.The United States has a comparative advantage in producing

Question

Quizplus · Accepted Answer

The United States has a comparative advantage in producing food if it can produce food at a lower opportunity cost compared to clothing, relative to the other country. Comparative advantage is determined not by the absolute production capabilities but by the relative efficiency of producing one good over another.

-Suppose the Production Possibilities for Two Countries,producing Either Food or Clothing,are