If the opportunity cost of producing one basketball in Romania is 3 Barbie dolls,while the opportunity cost of producing one basketball in Nigeria is 2 Barbie dolls,_______ has the comparative advantage in the production of basketballs.

Question

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Nigeria has a lower opportunity cost of producing one basketball, as it only costs 2 Barbie dolls compared to Romania's 3. This means that Nigeria has a comparative advantage in the production of basketballs. Romania may have a comparative advantage in the production of Barbie dolls, as they have a lower opportunity cost of producing them (1 basketball for 3 Barbie dolls compared to Nigeria's 1 basketball for 2 Barbie dolls). However, the question specifically asks about the production of basketballs, so the answer is B)Nigeria.

If the Opportunity Cost of Producing One Basketball in Romania