Suppose that the opportunity-cost ratio for sugar and almonds is 4 S 1 A in Hawaii but 1 S 2 A in California. Which state has the comparative advantage in producing almonds? a.Hawaii. b.California. c. Neither.
Chapter 24, Exerise Questions #20
Suppose that the opportunity-cost ratio for sugar and almonds is 4S ≡ 1A in Hawaii but 1S ≡ 2A in California. Which state has the comparative advantage in producing almonds?
a. Hawaii.
b. California.
c. Neither.
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Answer: b. California. Feedback: California has the comparative advantage in producing …View the full answer
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Authors: Campbell R. McConnell, Stanley L. Brue, Sean Masaki Flynn
ISBN: 978-1259450242