Suppose the United States can produce either 10 million cell phones or 20 million picture frames per worker per year, while Canada can produce either 2 million cell phones or 6 million picture frames per worker per year. Based on this information, identify the correct statement.

Question

Quizplus · Accepted Answer

The United States can produce more cell phones per worker than Canada, while Canada can produce more picture frames per worker than the United States. This means that the United States has a comparative advantage in cell phone production because it can produce them at a lower opportunity cost than Canada. In contrast, Canada has a comparative advantage in picture frame production because it can produce them at a lower opportunity cost than the United States.

Suppose the United States Can Produce Either 10 Million Cell