-Refer to above figure to answer this question.What do the comparative opportunity costs in the two countries suggest?

Question

Quizplus · Accepted Answer

Comparative opportunity cost suggests that each country should specialize in the production of goods for which it has a lower opportunity cost. If Harmony has a lower opportunity cost for producing pears and Tranquility has a lower opportunity cost for producing apples, then Harmony should specialize in pears and Tranquility in apples, potentially leading to benefits from trade.

-Refer to Above Figure to Answer This Question