alleryStart learning →X forgoes 20 t wool for 100 t tea; Y forgoes 100 t wool for 30 t tea. Who has comparative advantage in tea?
ANeither
BCountry Y
CBoth
DCountry X
Answer & Solution
Correct answer: D. Country X
X forgoes 0.2 t of wool per tonne of tea while Y forgoes about 3.3 t, so X has the lower opportunity cost.
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