Country | Opportunity Cost of 1 Ton of Apples | Opportunity Cost of 1 Ton of Oranges X | 1 ton of oranges | 1 ton of apples Y | 2 tons of oranges | 0.5 ton of apples The table above shows the opportunity costs of producing apples and oranges in countries X and Y. Which of the following can be concluded based on the data given in the table? Country X has an comparative advantage in producing oranges. Country Y has an comparative advantage in producing both goods. Country X has an absolute advantage in producing both goods. Country X has an comparative advantage in producing apples. Country Y has an absolute advantage in producing both goods.
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Opportunity cost is what you give up in order to produce something else. In this case, it's the amount of one good (apples or oranges) that must be given up in order to produce one ton of the other good. Absolute advantage refers to the ability of a country to Show more…
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