The following diagrams show the production possibilities boundaries for Austria and Switzerland,for the production of bicycles and shoes. FIGURE 32-2
-Refer to Figure 32-2.The diagrams illustrate that Switzerland

Question

The following diagrams show the production possibilities boundaries for Austria and Switzerland,for the production of bicycles and shoes.  FIGURE 32-2
-Refer to Figure 32-2.The diagrams illustrate that Switzerland

Quizplus · Accepted Answer

The slope of Switzerland's production possibilities boundary for bicycles is less steep than Austria's, indicating that Switzerland has a lower opportunity cost for producing bicycles. Therefore, Switzerland has a comparative advantage in the production of bicycles.

The Following Diagrams Show the Production Possibilities Boundaries for Austria