Belarus has a comparative advantage in the production of linen,but Russia has an absolute advantage in the production of linen.If these two countries decide to trade,
A)Belarus should export linen to Russia.
B)Russia should export linen to Belarus.
C)trading linen would provide no net advantage to either country.
D)Without additional information about opportunity costs,this question cannot be answered.

Question

Quizplus · Accepted Answer

Belarus has a comparative advantage in the production of linen, which means they can produce linen at a lower opportunity cost than Russia. On the other hand, Russia has an absolute advantage in the production of linen, meaning they can produce linen more efficiently than Belarus. In this scenario, it is still beneficial for Belarus to export linen to Russia since it is their comparative advantage, and Russia can benefit from importing linen at a lower cost than it would take for them to produce it domestically.

Belarus Has a Comparative Advantage in the Production of Linen,but