_____ has a comparative advantage in the production of brooms and _____ has a comparative advantage in the production of hats.
A) Bulgaria, Bulgaria
B) Bulgaria, Albania
C) Albania, Albania
D) Albania, Bulgaria
E) Neither country has a comparative advantage in brooms.

Question

Quizplus · Accepted Answer

Bulgaria has a comparative advantage in brooms, and Albania has a comparative advantage in hats, meaning each country can produce these goods at a lower opportunity cost than the other.

_____ Has a Comparative Advantage in the Production of Brooms