Figure 2-15 Figure 2-15 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles.
-Refer to Figure 2-15. Which country has a comparative advantage in the production of snow cones?

Question

Figure 2-15  Figure 2-15 shows the production possibilities frontiers for Greenland and Iceland. Each country produces two goods, snow cones and popsicles.
-Refer to Figure 2-15. Which country has a comparative advantage in the production of snow cones?

Quizplus · Accepted Answer

Iceland has a comparative advantage in the production of snow cones if it can produce them at a lower opportunity cost than Greenland.

Figure 2-15 Figure 2-15 Shows the Production Possibilities Frontiers