Question

Suppose that Portugal and Austria both produce fish and shoes. Portugal's opportunity cost of producing a pair of shoes is 4 pounds of fish while Austria's opportunity cost of producing a pair of shoes is 10 pounds of fish.
By comparing the opportunity cost of producing stained glass in the two countries, you can tell that _____ as a comparative advantage in the production of stained glass and _____ has a comparative advantage in the production of fish.

Answer 1

Answer:

Portugal has a comparative advantage in the production of shoes

Austria has a comparative advantage in the production of fishes

Explanation:

A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

Portugal has a lower opportunity cost in the production of shoes when compared with Asutria. Portugal has a comparative advantage in production of shoes.

It means thay Asutria is better at producing fish and would therefore have a comparative advantage in the production of fish.

I hope my answer helps you