Table 3-36
-Refer to Table 3-36. Antigua has a comparative advantage in the production of
A)towels and Barbuda has a comparative advantage in the production of umbrellas.
B)umbrellas and Barbuda has a comparative advantage in the production of towels.
C)both goods and Barbuda has a comparative advantage in the production of neither good.
D)neither good and Barbuda has a comparative advantage in the production of both goods.

Question

Table 3-36 
-Refer to Table 3-36. Antigua has a comparative advantage in the production of
A)towels and Barbuda has a comparative advantage in the production of umbrellas. 
B)umbrellas and Barbuda has a comparative advantage in the production of towels. 
C)both goods and Barbuda has a comparative advantage in the production of neither good. 
D)neither good and Barbuda has a comparative advantage in the production of both goods.

Quizplus · Accepted Answer

Antigua has a comparative advantage in producing towels if it can produce them at a lower opportunity cost than Barbuda, while Barbuda has a comparative advantage in producing umbrellas if it can produce them at a lower opportunity cost than Antigua.

Table 3-36 -Refer to Table 3-36. Antigua Has a Comparative Advantage in Comparative