If two countries each produce wool and cotton,the country with the lower opportunity cost for cotton (in terms of wool)will also have

Question

Quizplus · Accepted Answer

The country with the lower opportunity cost for cotton (in terms of wool) will have a comparative advantage in the production of cotton. This means that it can produce cotton at a lower opportunity cost (sacrificing less wool production) than the other country. Therefore, it is more efficient at producing cotton and should focus on producing cotton and trading with the other country for wool, which it has a higher opportunity cost for producing.

If Two Countries Each Produce Wool and Cotton,the Country with the Lower