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Figure: Comparative Advantage
Eastland and Westland produce only two goods, boxes of peaches and boxes of oranges, and this figure shows each nation's production possibility frontier for the two goods.
-(Figure: Comparative Advantage) Look at the figure Comparative Advantage. Eastland has a comparative advantage in producing:
A)oranges only.
B)peaches only.
C)both oranges and peaches.
D)neither oranges nor peaches.

Question

Use the following to answer questions :
Figure: Comparative Advantage
Eastland and Westland produce only two goods, boxes of peaches and boxes of oranges, and this figure shows each nation's production possibility frontier for the two goods. 
-(Figure: Comparative Advantage) Look at the figure Comparative Advantage. Eastland has a comparative advantage in producing:
A)oranges only. 
B)peaches only. 
C)both oranges and peaches. 
D)neither oranges nor peaches.

Quizplus · Accepted Answer

Eastland has a comparative advantage in producing oranges if it can produce them at a lower opportunity cost compared to peaches than the other region or country.

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