Table 3-6

-Refer to Table 3-5.Which country has a comparative advantage in each product?
A)England has a comparative advantage in bread, and Spain has a comparative advantage in cheese.
B)England has a comparative advantage in cheese, and Spain has a comparative advantage in bread.
C)England has a comparative advantage in both goods, and Spain has a comparative advantage in neither good.
D)England has a comparative advantage in neither good, and Spain has a comparative advantage in both goods.

Question

Table 3-6
 
-Refer to Table 3-5.Which country has a comparative advantage in each product?
A)England has a comparative advantage in bread, and Spain has a comparative advantage in cheese. 
B)England has a comparative advantage in cheese, and Spain has a comparative advantage in bread. 
C)England has a comparative advantage in both goods, and Spain has a comparative advantage in neither good. 
D)England has a comparative advantage in neither good, and Spain has a comparative advantage in both goods.

Quizplus · Accepted Answer

Comparative advantage is determined by which country can produce a good at a lower opportunity cost. Without the specific data from Table 3-5, the answer assumes typical comparative advantage scenarios where one country specializes in one product and the other country in the other product.

Table 3-6 -Refer to Table 3-5.Which Country Has a Comparative Advantage in a Comparative