Suppose two countries, A and B, produce only two goods, computers and beans. Country A

Social Studies

1 answer:

Ludmilka [50]3 years ago

6 0

Letter A and Letter D are correct.

Comparative advantage is the ability of a country to produce services and goods for a lower opportunity cost if compared to its trade partners. The Comparative Advantage Theory states that a country should always specialize in the production of products or services that have a lower opportunity cost for them. In this situation, Country A has a comparative advantage in the production of computer, therefore Country B should import computers from country A.

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