Table 3-38
-Refer to Table 3-38. Iowa and Nebraska can both produce corn and soybeans, and can switch between the production of corn and soybeans at a constant rate. The table illustrates the amount of corn or soybeans each state can produce in one growing season. From the table we know that Iowa has a
A)comparative advantage in the production of soybeans and Nebraska has a comparative advantage in the production of corn.
B)comparative advantage in the production of corn and Nebraska has a comparative advantage in the production of soybeans.
C)comparative advantage in both goods and Nebraska has a comparative advantage in neither good.
D)comparative advantage in neither good and Nebraska has a comparative advantage in both goods.

Question

​Table 3-38 
-​Refer to Table 3-38. Iowa and Nebraska can both produce corn and soybeans, and can switch between the production of corn and soybeans at a constant rate. The table illustrates the amount of corn or soybeans each state can produce in one growing season. From the table we know that Iowa has a
A)​comparative advantage in the production of soybeans and Nebraska has a comparative advantage in the production of corn. 
B)​comparative advantage in the production of corn and Nebraska has a comparative advantage in the production of soybeans. 
C)​comparative advantage in both goods and Nebraska has a comparative advantage in neither good. 
D)​comparative advantage in neither good and Nebraska has a comparative advantage in both goods.

Quizplus · Accepted Answer

Iowa has a lower opportunity cost of producing corn compared to soybeans (1/2 < 1) and Nebraska has a lower opportunity cost of producing soybeans compared to corn (2/3 < 1). Therefore, Iowa has a comparative advantage in corn and Nebraska has a comparative advantage in soybeans.

​Table 3-38 -​Refer to Table 3-38. Iowa and Nebraska Can Both Produce

Table 3-38 -Refer to Table 3-38. Iowa and Nebraska Can Both Produce