Figure 2-9 Figure 2-9 shows the production possibilities frontiers for Greenland and Iceland.Each country produces two goods,snow cones and popsicles.
-Refer to Figure 2-9.Which country has a comparative advantage in the production of snow cones?

Question

Figure 2-9  Figure 2-9 shows the production possibilities frontiers for Greenland and Iceland.Each country produces two goods,snow cones and popsicles.
-Refer to Figure 2-9.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 compared to Greenland. Comparative advantage is determined by comparing the opportunity costs of producing goods in each country.

Figure 2-9 Figure 2-9 Shows the Production Possibilities Frontiers