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

Question

Quizplus · Accepted Answer

According to the principle of comparative advantage, the country should specialize in producing the good for which it has a lower opportunity cost. Therefore, the country with a higher opportunity cost for cotton (in terms of wool) would have a lower opportunity cost for wool, indicating a comparative advantage in wool production.

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