Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 18 - International Trade and Public Policy - Exercises - 18.1 Benefits from Specialization and Trade - Page 426: 1.5a

Answer

Country C has comparative advantage in producing TVs. Country B has comparative advantage in producing computers.

Work Step by Step

Country C has comparative advantage in producing TVs. Country B has comparative advantage in producing computers. This is because the opportunity cost of TVs in country B is 1/2 computers, while the opportunity cost for TVs in country C is 1/4 computer
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