Table 3-6

-Refer to Table 3-6.Which country has a comparative advantage in each product
A)Denmark has a comparative advantage in bread, and Italy has a comparative advantage in cheese.
B)Denmark has a comparative advantage in cheese, and Italy has a comparative advantage in bread.
C)Denmark has a comparative advantage in both goods, and Italy has a comparative advantage in neither good.
D)Denmark has a comparative advantage in neither good, and Italy has a comparative advantage in both goods.

Question

Table 3-6
 
-Refer to Table 3-6.Which country has a comparative advantage in each product
A)Denmark has a comparative advantage in bread, and Italy has a comparative advantage in cheese. 
B)Denmark has a comparative advantage in cheese, and Italy has a comparative advantage in bread. 
C)Denmark has a comparative advantage in both goods, and Italy has a comparative advantage in neither good. 
D)Denmark has a comparative advantage in neither good, and Italy has a comparative advantage in both goods.

Quizplus · Accepted Answer

Comparative advantage is determined by which country can produce a good at a lower opportunity cost. Denmark has a comparative advantage in bread, and Italy has a comparative advantage in cheese based on their respective opportunity costs.

Table 3-6 -Refer to Table 3-6.Which Country Has a Comparative Advantage in a Comparative