Use the following to answer question:
-(Figure: The Markets for Melons in Russia)Use Figure: The Market for Melons in Russia.If Russia is trading based on comparative advantage and the world price is D,then Russia has _____ in the production of melons.

Question

Use the following to answer question: 
-(Figure: The Markets for Melons in Russia)Use Figure: The Market for Melons in Russia.If Russia is trading based on comparative advantage and the world price is D,then Russia has _____ in the production of melons.

Quizplus · Accepted Answer

Based on the graph, Russia has a lower opportunity cost of producing melons than the rest of the world (represented by the world price line). Therefore, Russia has a comparative advantage in the production of melons.

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