Use the production possibilities data below for Avokia and Baldonia to answer the following question(s).
Table 2-2
Refer to Table 2-2. Which of the following is correct?
A) Avokia has the comparative advantage in both goods.
B) Baldonia has the comparative advantage in oranges.
C) Avokia has the comparative advantage in oranges.
D) It would be impossible for Avokia and Baldonia to gain from trade.

Question

Use the production possibilities data below for Avokia and Baldonia to answer the following question(s).
Table 2-2
  Refer to Table 2-2. Which of the following is correct?
A) Avokia has the comparative advantage in both goods. 
B) Baldonia has the comparative advantage in oranges. 
C) Avokia has the comparative advantage in oranges. 
D) It would be impossible for Avokia and Baldonia to gain from trade.

Quizplus · Accepted Answer

The Answer of Use the production possibilities data below for Avokia and Baldonia to answer the following question(s).
Table 2-2
  Refer to Table 2-2. Which of the following is correct?
A) Avokia has the comparative advantage in both goods. 
B) Baldonia has the comparative advantage in oranges. 
C) Avokia has the comparative advantage in oranges. 
D) It would be impossible for Avokia and Baldonia to gain from trade.

Use the Production Possibilities Data Below for Avokia and Baldonia