The United States requires 20 hours of labor to produce 1 ton of steel and 30 hours of labor to produce 1,000 board feet of lumber. In Canada, 20 hours of labor are required to produce 1 ton of steel and 25 hours of labor to produce 1,000 board feet of lumber. Which country has a comparative advantage in the production of steel?
A) the United States
B) Canada
C) Neither the United States nor Canada has a comparative advantage.
D) Both the United States and Canada have a comparative advantage.

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The Answer of The United States requires 20 hours of labor to produce 1 ton of steel and 30 hours of labor to produce 1,000 board feet of lumber. In Canada, 20 hours of labor are required to produce 1 ton of steel and 25 hours of labor to produce 1,000 board feet of lumber. Which country has a comparative advantage in the production of steel?
A) the United States
B) Canada
C) Neither the United States nor Canada has a comparative advantage.
D) Both the United States and Canada have a comparative advantage.

The United States Requires 20 Hours of Labor to Produce