If the United States has a lower opportunity cost than Mexico in the production of wheat, then it will import wheat from Mexico.

Question

Quizplus · Accepted Answer

If the United States has a lower opportunity cost than Mexico in the production of wheat, then it means that the United States can produce wheat more efficiently than Mexico. In this case, it would make more sense for the United States to produce its own wheat rather than import it from Mexico. The U.S. would only import wheat from Mexico if Mexico had a comparative advantage in wheat production, meaning it could produce wheat more efficiently than the U.S. In other words, the country with the lowest opportunity cost should specialize in the production of the good they can produce most efficiently, while the other country should specialize in the production of the other good.

If the United States Has a Lower Opportunity Cost Than