Canada and the U.S. both produce wheat and computer software. Canada is said to have the comparative advantage in producing whea
t if ________. a. Canada requires fewer resources than the U.S. to produce a bushel of wheat.
b. the opportunity cost of producing a bushel of wheat is lower for Canada than it is for the U.s
c. the opportunity cost of producing a bushel of wheat is lower for the U.S. than it is for Canada.
d. the U.S. has an absolute advantage over Canada in producing computer software.
The correct option is B) the opportunity cost of producing a bushel of wheat is lower for Canada than it is for the U.S.
Explanation:
In economics, opportunity cost can be described as choosing an option from alternatives . Foe example, if we spend our time watching a movie,we lost our time for reading a book.
If the opportunity cost to produce a product will be lower, that means that the product will be more beneficial. For example, due to certain circumstances the opportunity cost of producing a bushel of what is lower as compared to that of U.S. Hence, Canada will have comparative advantage when compared with U.S.
In recipes, using measurements and scales. in business, to find cost and revenue in weather, to find the degree of temperature in arts, to measure and draw with rulers
